TAX OPTIMIZATION
Sell the right lot first. Every time.
ISA, PEA, Depot, GIA, SIPP — the API sequences sell-side decisions across tax wrappers to minimise taxable events. What took a private bank's tax desk years to calibrate, built into the API.
TAX WRAPPER SUPPORT
Wrapper-specific lot selection logic
| Wrapper | Market | Lot Selection Logic | Tax Treatment | Typical Drag Saving |
|---|---|---|---|---|
| ISA | UK | Gains sheltered — sell any lot (cost basis irrelevant) | Capital gains exempt inside wrapper | 30–60bps vs GIA equivalent |
| PEA | France | Restricted eligible securities; FIFO required on exit | Capital gains exempt after 5-year holding period | 20–45bps at maturity |
| GIA | UK | Tax-optimal lot — sell highest-gain lot last, harvest losses first | Capital gains taxable at prevailing CGT rate | 15–40bps vs naive FIFO |
| Depot | Germany | FIFO default; optional tax-loss harvesting pass before sell | Abgeltungsteuer (flat 25% capital gains) | 10–35bps with loss harvesting |
| SIPP | UK | Gains sheltered inside pension — sell any lot freely | Capital gains exempt inside pension wrapper | Similar to ISA |
Typical drag savings are indicative ranges based on historical lot selection simulations. Actual savings depend on portfolio composition, holding periods, and prevailing tax rates.
REGULATORY POSTURE
Designed for regulated environments
MiFID II best execution: Portfolwright's routing and lot selection logic is designed with MiFID II Article 27 best execution requirements in mind. However, platforms retain regulatory responsibility for their own compliance implementation and must conduct their own best execution assessments in accordance with their jurisdiction-specific regulatory obligations.
Tax advice: The API provides automated lot selection based on configurable tax wrapper rules. It does not constitute tax advice. Platforms should ensure their implementations are reviewed by qualified tax advisers for their specific jurisdiction and client base.