Brillant ISA, expires 8th April - is there a catch?

zzzLazyDaisy

Re the ISA wrapper - I have also come to the conclusion that there is no point, as any gains are unlikely to exceed the CGT limit (unless you have wads to invest..... which I haven't!!!)

lipidicman

Arent all Stocks and Shares Mini ISA investment subject to CGT if they werent in an ISA? ie Stocks and Shares attract CGT

dunstonh

Outside of an ISA, they would just be Unit Trusts and OEICs. In that case there would be potential for income tax. This causes issues for higher rate tax payers or borderline higher rate or elderly who may see reductions in their age allowance due to increased income. This is because dividend distributions not in an ISA would be considered income and CGT. Also, Gilt and Corporate Bond funds don't pay tax in distributions in an ISA but that would be paid on Unit Trusts and OEICs.

So, there are classes of people where CGT is not the only issue

Paul_Varjak

dunstonh wrote:

Outside of an ISA, they would just be Unit Trusts and OEICs. In that case there would be potential for income tax.

As I read it, this particular plan is only liable for CGT outside of an ISA.

dunstonh

I went a little OT on my explanation as to cover ISA v OEICS/Unit Trusts generically. As there are no distributions/dividends on this particular style of investment, it would only be CGT that is of concern. Indeed, if you could find the same product terms in as a single premium whole of life assurance bond, that may be better as there wouldnt be CGT on that. I havent checked but i doubt you could get comparable terms though.