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S/s isa

Anniel34
Posts: 4 Newbie
I have a self select S/S ISA with HL. The stocks will give me dividends. Is this dividend income tax free as the S/S are within an ISA wrapper?
Thanks for any advice.
Anniel34
Thanks for any advice.
Anniel34
0
Comments
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No they are not.
If you are a higher rate tax payer you will not have to pay the higher amount, but for normal rate tax payer there is no advantage.0 -
Thank you for your reply Lokolo,
If I just leave the money within the investment rather than taking the dividend, does the money remain tax free?
If not I cannot see the point of a S/S ISA?
Anniel340 -
Thank you for your reply Lokolo,
If I just leave the money within the investment rather than taking the dividend, does the money remain tax free?
If not I cannot see the point of a S/S ISA?
Anniel34
No it will not make a difference if you choose ACC or INC.
And only point really is Capital Gains, so if you are going to be making a lot of money. Or if you are a higher rate tax payer.
If these are not likely at all to happen then there isn't much point.
Although I am not going to be either, the ISA doesn't cost anything so I may as well use it anyway.0 -
The income from any gilts and corporate bonds you hold directly in a s/s ISA is tax free.0
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Thank you LardyCake,
So I will now look at investing into corporate bonds with a track record and decent income?? is there such a thing?
Anniel340 -
Thank you LardyCake,
So I will now look at investing into corporate bonds with a track record and decent income?? is there such a thing?
Yes there is!
You can buy bonds direct or you can buy bond funds (which is what I do).
Some Corp Bond Funds
http://www.h-l.co.uk/funds/Mark-Dampiers-Wealth-150?companyid=§orid=150&tab=security_details&x=36&y=9
& Strategic bond Funds
http://www.h-l.co.uk/funds/Mark-Dampiers-Wealth-150?companyid=§orid=152&tab=security_details&x=33&y=4
UK Gilt Funds:
http://www.h-l.co.uk/funds/Mark-Dampiers-Wealth-150?companyid=§orid=127&tab=security_details&x=19&y=9In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
Is the income from bond funds held in a s/s ISA tax free?0
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Is the income from bond funds held in a s/s ISA tax free?
Yes, I forgot about that.
I can't remember the specifics as to which do and don't.If you're a basic rate taxpayer dividends receive the same tax treatment regardless of whether they're in an ISA or not, with the 10% tax credit being applied. If you're a higher rate taxpayer though, you will have a tax advantage because you don't have to pay the additional 22.5% that would normally be due on dividends.
If, however, you buy a stocks and shares ISA where the underlying investment pays interest - such as corporate bonds - then the interest will be tax-free regardless of the tax band you fall into.0
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