We're aware that some users are experiencing technical issues which the team are working to resolve. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

non taxpayer and isas

if one is a non-taxpayer does having an isa make any sense? considering the admin charges involved!!
thinking of closing a maxi isa because I am fed-up with the charges and has meanwhile become a full-time mom.
input would be appreciated. thanks in advance.

Comments

  • BULLNOTBEAR
    BULLNOTBEAR Posts: 101 Forumite
    No real gains for you elmien,

    Depends on whether you will ever have investments that on maturity would lead to you using up your Capital Gains Tax Allowance (currently £8,200). Also, any interest/dividends may take your income over your annual income tax free allowance (£4,745 this tax year)

    I cannot comment precisely on this holding but it looks like you may need to be reviewing your actual investment/fund if you say that the charges are taking a chunk out of the holdings.

    You may need to have a look at re-registrating your holdings with a low charging fund supermarket/discount broker. Look at Martin's articles on these providers. Cavendish Online may be an option but depends on your holdings/provider.

    Martyn
    Val :)
  • System
    System Posts: 178,325 Community Admin
    10,000 Posts Photogenic Name Dropper
    dear Martyn
    thanks for your reply. It has been helpful.
    regards
    elmien
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • dunstonh
    dunstonh Posts: 119,548 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Also, some funds are still truely tax free. Corporate bonds and gilts for example.

    Charges and tax should be looked at together. Recently, my bond business has increased and my ISA/OEIC business has reduced as the reduction in yield over 10 years is now often lower on bonds than it is on ISAs. (that means the charges are lower over a 10 year period). With the only small difference in tax between ISAs, OEICS and bonds, it is charges that seem to be taking more priority. Plus bonds can be more tax efficient than ISAs depending on your circumstances.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • DiggingOut
    DiggingOut Posts: 770 Forumite
    One other factor is that your annual ISA allowances expire each year. So if you anticipate having higher income later, you may want to have your investments be tax-free -- but you will be limited in how much you can put into tax-free investments at that time.
    I have five stars! This doesn't mean that I know anything about any of the things I post. I could be a raving lunatic, or a brilliant genius, or just some guy on the internet. In fact, I could be all three at the same time.

    If anything I say makes sense, then do it. If not, don't. Don't blame me or my stars if you do something stupid because I suggested it. I'm responsible for my own stupidity only. You are responsible for yours.

    Why, I don't even have five stars anymore! Aren't you glad you aren't responsible for my stupidity?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.6K Banking & Borrowing
  • 253K Reduce Debt & Boost Income
  • 453.4K Spending & Discounts
  • 243.6K Work, Benefits & Business
  • 598.3K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 256.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.