Are ISA's ALWAYS the best option?

thenudeone

Ark_Welder wrote: »

There is no further tax to be paid by higher-rate taxpayers on dividends from shares in an S&S ISA. For basic rate and non-taxpayers it makes no difference

But it DOES make a difference for Capital Gains Tax purposes.

The tax-free CGT allowance is just over £10k pa. The allowance applies to any assets sold in the year regardless of how long they were owned. Unused allowances can't be carried forward from one year to the next

A modest £10k invested in stocks & shares growing at 5% pa and sold after 20 years would create a taxable capital gain of over £6k and a tax charge of over £900.
If the same investments were in a S&S ISA the tax charge would be nil.