Advice on stocks & shares ISAs?

whiteflag_3

Deemy wrote:

Cheerfulcat, it would help if you knew what you were talking about, clearly you don't understand shares isa's properly, it is not nonsense that cash funds can be bought and held in shares ISA's

I refer you to following link which I hope you will take as an learning experience

http://www.trustnet.com/it/funds/?fund=67834

Sorry counld'nt help myself. Had a lie down in a darkened room and decided I will make one more post.

Deemy - follow your link and I think you will find the JP Morgan MAnaged cash PLC is an investment trust , not a unit trust (Fund Type United Kingdom - Investment Trust (2004) .

Now I would have thought you of all people would have known that. (note Im not laughing or winking- theres no smilie for "sick of being insulted"

Are you going to keep on insulting or are you going to apologise to Cheerfulcat?

cloud_dog

Sorry, feel I must side with Deemy on this one - not necessarily the specifics of his posts but, the concept of holding cash (or cash equivalent) within a S&S ISA.

You can achieve this if you hold your UT’s / OIECS investments via the CoFunds supermarket. They have a fund called “Cash Reserve” which, in essence, pays you interest on any monies invested in the fund. Obviously this fund is designed for short term holding of funds whilst investment decisions are made but I’ve happily held cash in it for over a 12 month period whilst deciding on when and what to invest in.

cloud_dog

p.s. Am a bit suprised none of the IFA type people never commented on this.

Deemy

whiteflag wrote:

Sorry counld'nt help myself. Had a lie down in a darkened room and decided I will make one more post.

Deemy - follow your link and I think you will find the JP Morgan MAnaged cash PLC is an investment trust , not a unit trust (Fund Type United Kingdom - Investment Trust (2004) .

Now I would have thought you of all people would have known that. (note Im not laughing or winking- theres no smilie for "sick of being insulted"

Are you going to keep on insulting or are you going to apologise to Cheerfulcat?

Yeh it is an investment trust clever boy This is what happens when I get sucked off topic... due to the intial post by :rolleyes:

cheerfulcat ? apology ? - Not going to apologise to someone that talks cobblers

Are you goign to post on topic or do you want continue playing the big baby ?

And I'm not here to teach IFA's their job

And you should definetely smile more, perhaps you would get more custom ! Ive given you far too much attention

:kisses: :kisses: :kisses: :kisses: :kisses:

.
.
.
.
My balanced, impartial , non commission based, banked good profits, and open profits in the range of 40 to 80% on said recs, advice, is as it stands, put 15% or so into the IT trusts posted way back befpre the noise started, and yeh I hold part of my ISA in cash within a SHARES ISA... squaregain.co.uk... whilt I await 'new' opportunities.

Unit Trusts ? Sorry too much of a cut for the IFA that would eat into the potential long-term gains as against an IT.

Its up the individual ? you follow an ifa for 7%, or perhaps take a hint, from a none IFA, ? no skin of my nose, definetly not bothered if even I look a fool to most, as its the bottom line on capital gains either open or banked that counts Not commissions earned

So go head post some more nit picking, call me cobblers, call me whatever you like dear ...... as if it makes any difference to the portfolio, which is all that counts

I mean, yeh Merrils down a little, but still at 45%, but indias holding up there at above 83% Thats in 13 months... the others? well I guess you will nit pick and say its 80 not 83

Enjoy feeding the newbies the IFA line... adios...

:iloveyou:

cheerfulcat

cloud_dog wrote:

Sorry, feel I must side with Deemy on this one - not necessarily the specifics of his posts but, the concept of holding cash (or cash equivalent) within a S&S ISA.

You can achieve this if you hold your UT’s / OIECS investments via the CoFunds supermarket. They have a fund called “Cash Reserve” which, in essence, pays you interest on any monies invested in the fund. Obviously this fund is designed for short term holding of funds whilst investment decisions are made but I’ve happily held cash in it for over a 12 month period whilst deciding on when and what to invest in.

cloud_dog

p.s. Am a bit suprised none of the IFA type people never commented on this.

cloud_dog, yes, you can hold cash in a cash account supplied by the broker whose ISA wrapper you use - that is not in question.( I assume that's what you mean; I don't use CoFunds because as I have said before I AM NOT AN IFA. ) Any interest paid in these accounts is taxed, of course, so the cash does not benefit from being in the ISA wrapper. However it is not allowed to hold a cash unit trust or investment trust in a S&S ISA, which is what Deemy has been insisting. This is quite clear in the link I posted, which I post again here

http://www.hmrc.gov.uk/leaflets/ir2008a.htm#25

Deemy, perhaps you would like to tell us which broker has allowed you to hold a cash investment trust in your stocks and shares ISA.

cloud_dog

cheerfulcat wrote:

cloud_dog, yes, you can hold cash in a cash account supplied by the broker whose ISA wrapper you use - that is not in question.( I assume that's what you mean; I don't use CoFunds because as I have said before I AM NOT AN IFA. ) Any interest paid in these accounts is taxed, of course, so the cash does not benefit from being in the ISA wrapper.

Ok, I accept I do not know all the ins and out of the Cash Reserve account but, it is listed as a 'fund' option and you can transfer your investments from a fund into the Cash Reserve 'fund'. I had the impression that the gain (interest) was tax free but as I said I am not an expert.

However it is not allowed to hold a cash unit trust or investment trust in a S&S ISA, which is what Deemy has been insisting. This is quite clear in the link I posted, which I post again here

http://www.hmrc.gov.uk/leaflets/ir2008a.htm#25

Deemy, perhaps you would like to tell us which broker has allowed you to hold a cash investment trust in your stocks and shares ISA.

Ok (again), my understanding of the position is that it is not 'clear' as you say. The IR obviously don't want people to haold cash in there but the rules are not clear, i.e. no definitive timescale, etc, etc.

Wrt to providers, Squaregain do allow you to hold cash under the S&S Self Select ISA account (and I would imagine all others do as well). So if you put £7k into the account and bought some shares and then sim months later sold them the monies realied wouold be held within your ISA account in Squaregain. Whether these monies would accru gross interest I'm not sure.

cloud_dog

cheerfulcat

cloud_dog, as I am neither an IFA nor a Cofunds customer I have no access to the Cofunds website, so I can't look at the Cash Reserve " fund ". But I will stick my neck out and say it is almost certainly a cash deposit account of some sort because if it is a cash unit trust/IT your ISA can be declared void by the taxman ( the onus is on you as the investor to make sure that you are not breaking any rules, btw ).

Wrt to providers, Squaregain do allow you to hold cash under the S&S Self Select ISA account (and I would imagine all others do as well). So if you put £7k into the account and bought some shares and then sim months later sold them the monies realied wouold be held within your ISA account in Squaregain. Whether these monies would accru gross interest I'm not sure.

I have already said several times that cash on deposit in your broker's account is allowed in a S&S ISA so I'm not sure why you think I'm saying otherwise? As whether tax is deducted at source, yes it is. Check your statements. Or read the info at HMRC where it says quite clearly

" Cash may only be held in the stocks and shares and life insurance components of ISAs to invest in qualifying stocks and shares or life insurance policies. This includes cash subscriptions, interest and dividends, and proceeds from disposals of qualifying investments which have not yet been reinvested.

The ISA manager may pay interest on this cash while it is held in the account. There is no income tax to pay on this interest, but the manager by law must deduct a flat rate 20% charge before crediting it to the account. You do not have to declare this interest on a tax return. "

Ok (again), my understanding of the position is that it is not 'clear' as you say. The IR obviously don't want people to haold cash in there but the rules are not clear, i.e. no definitive timescale, etc, etc.

I don't see how it could be any clearer! You are allowed to hold cash in the broker's deposit account for an indefinite period of time, as long as the cash is being held with a view to investing it. How long you are allowed to hold specific sums depends on the broker but you could always have a varying amount of cash. But what's the point? It is being taxed, so does not benefit from the ISA wrapper.

cloud_dog

But what's the point? It is being taxed, so does not benefit from the ISA wrapper.

The point of a S&S ISA is to avoid CGT and possibly higher income tax, I am therefore not really bothered if it is taxed (at the lower rate) or not as long as the cash remains within the ISA wrapper for the above reasons.

If you go back to the original point regarding cash within a S&S ISA the question was "....so how can I move 50% of my S&S ISA into cash..." not is the cash taxed or not.

People appear to be getting somewhat vexed on this subject so this is my last post on this point.

cloud_dog

whiteflag_3

Cheerfulcat are you getting vexed on this subject?

I thought you were just posting factual info that both experts and none experts would find useful. Served as a bit of revision for me as I dug out the text books on cash in ISAs. All I can say is your research is spot on. :beer:

cheerfulcat

cloud_dog wrote:

The point of a S&S ISA is to avoid CGT and possibly higher income tax, I am therefore not really bothered if it is taxed (at the lower rate) or not as long as the cash remains within the ISA wrapper for the above reasons.

If you go back to the original point regarding cash within a S&S ISA the question was "....so how can I move 50% of my S&S ISA into cash..." not is the cash taxed or not.

People appear to be getting somewhat vexed on this subject so this is my last post on this point.

cloud_dog

Oh good grief. Look, my argument has been with Deemy's reiterated insistence that cash unit trusts/ITs are allowed in a S&S ISA.

Deemy wrote:

You could move it to a different ISA asset class i.e. a cash fund ISA . Or if the rules allow to move it cash within your shares isa as a temp measure.

whiteflag wrote:

Cheerfulcat are you getting vexed on this subject?

Hi,

TBH I am vexed with this whole BB where anyone posting actual facts (as opposed to vague half-understood factoids ) gets shouted down. I don't think I'll bother posting anymore. Thanks for your support, whiteflag.

whiteflag_3

cheerfulcat wrote:

Oh good grief. Look, my argument has been with Deemy's reiterated insistence that cash unit trusts/ITs are allowed in a S&S ISA.





Hi,

TBH I am vexed with this whole BB where anyone posting actual facts (as opposed to vague half-understood factoids ) gets shouted down. I don't think I'll bother posting anymore. Thanks for your support, whiteflag.

I know the feeling. I hope you havent been sent abusive PMs as well