stock and shares isa

Aegis

Mr_h wrote: »

Am I right in saying that there's no real advantage in having an ISA-wrapper if you were saving on a monthly basis with Accumulation funds?

Instead, having funds in an ISA wrapper is more advantageous if you are either choosing Income Funds, or if you know you will be exceeding your Capital Gains allowance in a given Tax Year??

You can still get a CGT liability from drip feeds. When you come to sell, the CGT liability is the difference between the total purchase price and the sale price, so how you actually get the total number of units is fairly moot.

Mr_h

Thanks for letting me know about this. I suppose if you know that you will be investing for the long term, and are not sure about how to calculate the CGT liability, it may be safer overall to invest using an ISA wrapper (assuming you are ok with the annual contribution limits).

masonic

Mr_h wrote: »

Am I right in saying that there's no real advantage in having an ISA-wrapper if you were saving on a monthly basis with Accumulation funds?

Instead, having funds in an ISA wrapper is more advantageous if you are either choosing Income Funds, or if you know you will be exceeding your Capital Gains allowance in a given Tax Year??

Just to add to this, as I understand it basic rate taxpayers do not have any further tax to pay on income paid from investments. Therefore, for a basic rate taxpayer, it is better to prioritise growth/accumulation funds over funds from which you are taking an income when deciding what to put into the ISA wrapper.

jamesd

dudkate, open an account with Hargreaves Lansdown. Stick half of your money in Invesco Perpetual income, a quarter in Invesco Perpetual Monthly Income Plus or Jupiter Corporate Bond Fund (or 12.5% in each...) and a quarter in Neptune Global Equity. Then learn more while you sort out what these are like... and adjust according to our preferences.

Really the mixture should be set based on how much up and down movement you can handle so I've simply made some really broad assumptions about you and made a quick suggestion to get you started so you don't just wander around paralysed, which can easily happen at the start.