How to split a £1,000 a month investment between an ISA and a fund account

Primrose

One thought which crossed my mind was that it was surely sensible to protect the best earning investment in an ISA first so that you get as much as possible out of the taxman's clutches, allowing any dividends to be reinvested free of tax. Any surplus cash can there go into other investments.

jamesd

For the portions that are subject to CGT, do remember that one index tracking fund is pretty much the same as the next compared to the CGT bill. It's easy enough to sell one and buy another tracking the same thing just to realise a capital gain each year. That way you use the annual CGT allowances so you don't build up a large gain at the end. If you think the original one is better, just wait for the time to expire and move back.