stocks and shares isa...

darkelf
darkelf Posts: 60 Forumite
edited 14 June 2015 at 10:23AM in ISAs & tax-free savings
Hey all,
I have opened a stocks and shares isa ready to make a investment in a stock and understand the annual flat fee ( halifax) and trade fees etc, his is not a managed fund but one where i pick my stock and invest as to how i want
but after watching this video
https://youtu.be/Okfa5bZ5XCI

its says at the end (0.50 mark) about "make sure your happy putting your money away for 5 to 10 years"......
???
what does that mean?
i thought i could just it like a normal share dealing acount with no time restraints, in case i make a good amount of profit in 6 months etc.
can someone clarify that please for me
thank you
rich.

Comments

  • w00519772
    w00519772 Posts: 1,297 Forumite
    darkelf wrote: »
    Hey all,
    I have opened a stocks and shares isa ready to make a investment in a stock and understand the annual flat fee ( halifax) and trade fees etc, his is not a managed fund but one where i pick my stock and invest as to how i want
    but after watching this video
    https://youtu.be/Okfa5bZ5XCI

    its says at the end (0.50 mark) about "make sure your happy putting your money away for 5 to 10 years"......
    ???
    what does that mean?
    i thought i could just it like a normal share dealing acount with no time restraints, in case i make a good amount of profit in 6 months etc.
    can someone clarify that please for me
    thank you
    rich.

    I have a Halifax Stocks and Shares ISA. They advise leaving your money there for at least five years as it is a long term investment. I can withdraw the money whenever I want i.e. I do not have to wait five (or ten) years.
  • darkelf
    darkelf Posts: 60 Forumite
    ok, thank you. Nice to hear.
    I have a normal sharedealing account with the halifax but want the isa account to bypass any Capital gains tax on large profits i might make on my stock.
    as i read it, the isa is 12.50 annual fee and the normal 12.50 trade fees.
    Is that what you pay?
  • bigfreddiel
    bigfreddiel Posts: 4,263 Forumite
    darkelf wrote: »
    ok, thank you. Nice to hear.
    I have a normal sharedealing account with the halifax but want the isa account to bypass any Capital gains tax on large profits i might make on my stock.
    as i read it, the isa is 12.50 annual fee and the normal 12.50 trade fees.
    Is that what you pay?

    So in year one you can have a max of £15240 invested and you need to gain £11100 before becoming liable to cgt - good luck with that one!

    Cheers fj
  • AndyT678
    AndyT678 Posts: 757 Forumite
    First Anniversary Combo Breaker
    bigfreddiel wrote: »
    So in year one you can have a max of £15240 invested and you need to gain £11100 before becoming liable to cgt - good luck with that one!

    Cheers fj

    No. This tax year you can contribute up to £15,240 in an S&S ISA and there is no CGT on any gains. That's kind of the point of them.
  • jimjames
    jimjames Posts: 17,611 Forumite
    Photogenic Name Dropper First Anniversary First Post
    AndyT678 wrote: »
    No. This tax year you can contribute up to £15,240 in an S&S ISA and there is no CGT on any gains. That's kind of the point of them.
    I think bigfriediel is probably aware of that.


    I thought it was just being pointed out that the OP's suggestion that they expected to make sufficient profit in 6 months on £15k to be affected by CGT limit was probably a little ambitious.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • AndyT678
    AndyT678 Posts: 757 Forumite
    First Anniversary Combo Breaker
    jimjames wrote: »
    I think bigfriediel is probably aware of that.


    I thought it was just being pointed out that the OP's suggestion that they expected to make sufficient profit in 6 months on £15k to be affected by CGT limit was probably a little ambitious.

    On first reading I thought that the suggestion was that CGT would apply to gains >£11k in an ISA but having reread the post I think you are probably right.
  • bigfreddiel
    bigfreddiel Posts: 4,263 Forumite
    AndyT678 wrote: »
    On first reading I thought that the suggestion was that CGT would apply to gains >£11k in an ISA but having reread the post I think you are probably right.

    Absolutely correct, you need to make a gain of £11,100 before you pay any tax when you invest outside an ISA. And that's only if you realise the gain!

    Obviously inside an ISA there is no cgt to worry about but good luck with achieving that in your first year with the full allowance!

    Cheers fj
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