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Investments

The_Fiddler_2
The_Fiddler_2 Posts: 565 Forumite
in Savings & investments
Having used up this year's ISA allowance are there any other places I can shelter investment purchases from tax?
Noobie (not so :D) trying to make loads a dosh - please bear with all my questions :beer: Thanks :D


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Comments

  • jon3001
    jon3001 Posts: 890 Forumite
    NSI Savings Certificates (for saving rather than investing)
    http://www.nsandi.com/savingneeds/taxfreeinvestments.jsp

    British gold bullion coins (Sovereigns and Britannias)

    Pension funds, of course.

    Venture Capital Trusts.

    Don't forget that you get a CGT allowance anyway.
  • The_Fiddler_2
    The_Fiddler_2 Posts: 565 Forumite
    What does an ISA actually shelter S&S from?
    Noobie (not so :D) trying to make loads a dosh - please bear with all my questions :beer: Thanks :D


  • Aegis
    Aegis Posts: 5,695 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    The_Fiddler wrote: »
    What does an ISA actually shelter S&S from?
    Higher-rate income tax on dividends, all income tax on interest from gilts and bonds, and all capital gains tax.
    I am a Chartered Financial Planner
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
  • dunstonh
    dunstonh Posts: 121,283 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    ...and a lot of paperwork having to keep track of buy and sell dates and values.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • The_Fiddler_2
    The_Fiddler_2 Posts: 565 Forumite
    So having filled my ISA what happens if I invest outside an ISA? How much could I invest? Are there other tax shelters? (Lower rate tax payer)
    Noobie (not so :D) trying to make loads a dosh - please bear with all my questions :beer: Thanks :D


  • jem16
    jem16 Posts: 19,849 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The_Fiddler wrote: »
    So having filled my ISA what happens if I invest outside an ISA?

    You are subject to CGT.
    How much could I invest?

    As much as you like.
    Are there other tax shelters? (Lower rate tax payer)

    Already listed in Post 2.
  • The_Fiddler_2
    The_Fiddler_2 Posts: 565 Forumite
    jem16 wrote: »
    You are subject to CGT.
    What does that mean exactly in relation to buying and sellig stocks?

    Already listed in Post 2.
    I specifically mean are there any shelters were I to buy stocks and shares, unit trusts etc.

    Thanks :)
    Noobie (not so :D) trying to make loads a dosh - please bear with all my questions :beer: Thanks :D


  • jem16
    jem16 Posts: 19,849 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The_Fiddler wrote: »
    What does that mean exactly in relation to buying and sellig stocks?

    You have a CGT allowance of £9600 each year. If you sell stocks and shares and make a gain of over this allowance you must pay CGT.

    http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_4016313?cids=Google_PPC&cre=Money

    I specifically mean are there any shelters were I to buy stocks and shares, unit trusts etc.

    As Post 2;

    Pension funds

    Venture capital trusts

    Other than that, no.
  • The_Fiddler_2
    The_Fiddler_2 Posts: 565 Forumite
    Does that mean if I buy X for £6000 and sell it for £10000 I would need to pay CGT on £1000, or the £10000, or is the gain only £4000 and I would not need to pay CGT (this is just hypothetical BTW :D)

    Can you sell part of an asset so that you keep yourself under the CGT threshold?
    Noobie (not so :D) trying to make loads a dosh - please bear with all my questions :beer: Thanks :D


  • cheerfulcat
    cheerfulcat Posts: 3,418 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    The_Fiddler wrote: »
    Does that mean if I buy X for £6000 and sell it for £10000 I would need to pay CGT on £1000, or the £10000, or is the gain only £4000 and I would not need to pay CGT

    Yes.
    Can you sell part of an asset so that you keep yourself under the CGT threshold?
    If it can be broken up then yes, you can.
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