Best Way to Cut Costs/Taxes in Various Savings/Investments

hobbesandco

A question for all:

I am about to invest in another stocks/shares ISA (different tax year) for my partner and possibly an ETF along with a SIPP. This is what I would like to do:

1. Invest in individual stocks in the NYSE.
2. Invest in international ETFs (China/Japan/Brazil not sure).
3. Invest in individual stocks in the FTSE or FTSE-All Index. Again not sure.
4. Invest equities in SIPPs.

I would like to max out our stocks/shares ISA next year and for tax purposes, invest in a SIPP? I've tracked the various SIPP vs. occupational pensions arguments and I think with A-Day fast approaching, various brokers will be able to offer some good deals. My actual question is would anyone be able to recommend how I should invest each of the above 4? (eg. should I invest individual stocks in ISAs and leave ETFS outside an ISA or vice versa? Should I invest individual stocks in SIPPS or place ETFs inside a SIPP? Anyone have any suggestions? Deemy2004, dunstonh any advice guys/gals?

cheerfulcat

Hi, hobbesandco,

To a basic rate tax payer the only advantage now of ISAs is the sheltering of gains from CGT, so ISAs should hold investments from which you expect a large gain and, preferably, minimal loss ( because you can't offset losses within an ISA against gains outside the wrapper ). Shares held for long-term income are best held outside of the ISA unless you are a higher rate taxpayer, in which case shelter them ( so you don't get taxed on the dividend income ).

AFAICS, ETFs are cheapest to hold in a Squaregain ISA. No commission, just a £25 annual fee for the wrapper.

Shares and ETFs have a similar tax position, though ETFs don't attract stamp duty, which is nice :-)

Just my thoughts; IMHO, DYOR and so on :-)

Cheerfulcat