Is it nicer in an ISA?

672 Posts
Poll Started 7 November 2006: Is it nicer in an ISA? Last week's savings poll taught me that many MoneySavers have more in savings than I thought and I've refocused the article accordingly. For the same reason, I want to know what you do with your ISAs. As it’s possible to have done different things with ISAs over a number of years, which of these is closest to your situation?
A. I don't have savings
B. I have savings, but don't usually use ISAs
C. I main use a (mini) cash ISA(s)
D. I mainly use my ISA for shares
E. I've got a mix of shares and cash ISAs
F. What is an ISA?
Vote here or click reply to discuss
A. I don't have savings
B. I have savings, but don't usually use ISAs
C. I main use a (mini) cash ISA(s)
D. I mainly use my ISA for shares
E. I've got a mix of shares and cash ISAs
F. What is an ISA?
Vote here or click reply to discuss
0
This discussion has been closed.
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Replies
Cash mini ISAs are a well covered topic on MSE.com but there is nothing on mini share ISAs and maxi ISAs.
While it's nice to know that the tax man can't get his hands on your capital gains when you have shares in an ISA, no-one seems to make it clear that you get quite a substantial allowance before you have to start paying capital gains tax anyway. So in actual fact you have to own a lot of share-based ISAs before you're likely to reach this threshold (or alternatively own a second property, or more). Hence, putting shares in ISAs isn't the most sensible thing to do, and yet you're led to believe it's very sensible. The cash ISA element is the most efficient part, tax-wise, unless you've a lot of savings.
For example, to make over £8,000 in capital gains (the approximate allowance) you'd need the stock market to go up by 20% (a good year, but by no means unheard of) AND have £40,000 in share-based ISAs - which is six years' worth of full maxi ISA allowance. I doubt that applies to most people.
Please get advising, MSE...
I use cash ISAs, but have enough in equities in my pension fund (keeping eggs in separate baskets..)
As a higher rate tax-payer, I find putting more into my pension scheme at work is a better use for my money over the share-ISAs.....
HTH,
IW x
:T Debt free wannabe - Proud to be dealing with my debts! :T
Remember the MoneySaving mantras!
IF YOU'RE SKINT......
Do I need it? Can I afford it? Can I find it cheaper anywhere else?
IF YOU'RE NOT SKINT......
Will I use it? Is it worth it? Can I find it cheaper anywhere else?
Once you get up to 20k or more, you start losing your extra age tax allowance.
But income from ISAs is tax free
It's definitely wortth maxing out your stocks and shares ISAs once you've got a nice cash emergency fund set by.
C. I mainly use a (mini) cash ISA(s) 46.9% (1187 Votes)
E. I've got a mix of shares and cash ISAs 15.5% (394 Votes)
A. I don't have savings 14.9% (377 Votes)
B. I have savings, but don't usually use ISAs 14.7% (373 Votes)
D. I mainly use my ISA for shares 5.6% (143 Votes)
F. What’s an ISA? 2% (51 Votes)
Total Votes: 2526
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