Reply to: Stocks & Shares ISAs

[rootsnall]

The current rules are that cash can be held in a maxi ISA - however the interest on that cash is taxed at 20%

Well there you go ! I wonder if H&L deduct it at source or if I'll be forgetting to put it on my self assessment

I'm guessing it's deducted at source. They don't tell you that when luring you in with high interest rates

ps. just read the link, deducted at source

[ASB]

I've never read the rules, but I assume you can just put your 7K in a Maxi ISA now and delay buying aslong as you want !?

I still wasn't sure what the script would be when it came to buying either ( ie. they used to have limits on single stock holdings ) but it appeared I could do what I wanted.

I'm bored. So I looked it up.

The current rules are that cash can be held in a maxi ISA - however the interest on that cash is taxed at 20%

http://www.everyinvestor.co.uk/inves...ng-in-the-tail

The old rules were that the interest was not taxed but this gave rise to possible abuse hence the restrictions on cash holdings.

[Peoplesoft bloke]

I guess he transferred existing cash ISAs to equity ISAs.
I invest the limit (7200) each year. So far it's been a very bad move.
But that's all NuLieborZanuPF's fault.

I think the point was being made is that cash can be deposited in the ISA (subject to annual contribution limits) in preparation for trading. You can sit on it. In the same way as you can sell things, leave the cash in the ISA and invest again at some other point.

The limits for this used to be really strict (I think it might even have been as low as 14 days) but they have been relaxed over the years.

Got it now - thanks for the clarification.

[rootsnall]

The limits for this used to be really strict (I think it might even have been as low as 14 days) but they have been relaxed over the years.

I've never read the rules, but I assume you can just put your 7K in a Maxi ISA now and delay buying aslong as you want !?

I still wasn't sure what the script would be when it came to buying either ( ie. they used to have limits on single stock holdings ) but it appeared I could do what I wanted.

[ASB]

Eh? Do you mean just? I thought you lost it if you weren't in by the end of the tax year.

I think the point was being made is that cash can be deposited in the ISA (subject to annual contribution limits) in preparation for trading. You can sit on it. In the same way as you can sell things, leave the cash in the ISA and invest again at some other point.

The limits for this used to be really strict (I think it might even have been as low as 14 days) but they have been relaxed over the years.

[ace00]

Eh? Do you mean just? I thought you lost it if you weren't in by the end of the tax year.

I guess he transferred existing cash ISAs to equity ISAs.
I invest the limit (7200) each year. So far it's been a very bad move.
But that's all NuLieborZanuPF's fault.

[rootsnall]

Eh? Do you mean just? I thought you lost it if you weren't in by the end of the tax year.

I paid in my 7K each year but kept it in cash within the ISA wrapper. As explained in the post above outfits such as H&L sometimes offer good rates of interest on cash holdings so you can time buying the shares.

[Peoplesoft bloke]

...... I just invested my last 3 years worth of ISA allowance into shares, time will tell if it was a good move !?

Eh? Do you mean just? I thought you lost it if you weren't in by the end of the tax year.

[rootsnall]

Kind of what I was thinking.

Peoplesoft, I realise that there is a limit but it would easily take all my spare cash to fill it (i.e. I'm not the Prawn...)

Have a look at www.h-l.co.uk or similar. You don't have to buy your shares as you put the cash in there, it can be held as cash until you think it is a good time to buy. H&L often offer a bonus interest rate to attract your cash near the end of the tax year. As mentioned now is possibly a good time as shares have taken a bit of a battering. I just invested my last 3 years worth of ISA allowance into shares, time will tell if it was a good move !?

[Alf W]

I do and it's all Self Select. You can still invest in Funds using the Self Select option so it doesn't just rely on your ability to pick shares.

There has been money to be made over the past 6 months trading on ranges and with wide price swings. I'm a bit up but it's mainly been a defensive strategy to make sure I didn't lose.

Make sure you can afford your mortgage, have a financial cushion and have a pension sorted out before going down this route (and decent IFA will tell you this).

Otherwise my advice would be to take a couple of grand and get punting in CFD market.

[Peoplesoft bloke]

Kind of what I was thinking.

Peoplesoft, I realise that there is a limit but it would easily take all my spare cash to fill it (i.e. I'm not the Prawn...)

Indeed, hence my use of "necessarily". The other good thing is that there's no capital gains tax on the value of shares in a shares ISA.

[expat]

Anyone still invest in these? There was one guy on here who invested all his spare cash in one every year - do you still do this?

As they are a long term investment are they still worthwhile?

The investment is in shares; the ISA is a tax-free wrapper.

The ISA is worthwhile if you are going to invest in shares.

[Shimano105]

Well if you buy now and choose wisely, you are buying a long way from the peak, so things are good at the moment.

Kind of what I was thinking.

Peoplesoft, I realise that there is a limit but it would easily take all my spare cash to fill it (i.e. I'm not the Prawn...)

[Peoplesoft bloke]

Anyone still invest in these? There was one guy on here who invested all his spare cash in one every year - do you still do this?

As they are a long term investment are they still worthwhile?

I do (once I've hit the cash limit) - you can't necessarily invest all your spare cash - there are limits of course.

Although mine have plummeted the extra incentive is there for me to leave funds in long term in they'll come back. Currently trying to set up a self selection shares ISA. Selftrade were impossible to deal with so I'm using my bank's share dealing service and putting it in their shares ISA.

[DimPrawn]

Anyone still invest in these? There was one guy on here who invested all his spare cash in one every year - do you still do this?

As they are a long term investment are they still worthwhile?

Well if you buy now and choose wisely, you are buying a long way from the peak, so things are good at the moment.