Mini ISA Stocks & Shares

sponge_3

I understand if I put money into a cash ISA, I can avoid tax from the interest I gained from my savings. For the stocks & shares ISA, does that mean I can avoid the capital gain tax reduction from my investment? So how does the capital gain allowance £8.5k calculated? Does it exclude the capital gain from ISA stocks & shares? Really appreciated your help! :rotfl:

cheerfulcat

Hi there,

Yes, there is no capital gains tax on investments within a S&S ISA. The CGT allowance covers gains from investments held outside of any tax wrapper. So you can have any amount of gains in a PEP, ISA or pension plus £8500 of gains outside of them, every year.

Deemy

sponge wrote:

I understand if I put money into a cash ISA, I can avoid tax from the interest I gained from my savings. For the stocks & shares ISA, does that mean I can avoid the capital gain tax reduction from my investment? So how does the capital gain allowance £8.5k calculated? Does it exclude the capital gain from ISA stocks & shares? Really appreciated your help! :rotfl:

the gains are only taxable when you sell the holding, so you could also offset against losses if you make more than £8.5k profit (less taper relief)

david78

And for higher rate tax payers, less tax is paid on dividends, so that's another saving.