Halifax Sharebuilder or Share ISA?

topcatk_2

I currently have a small share holding held in a Halifax Sharebuilder account ~ £2k. I am also a higher rate tax payer. Given I can't transfer shares directly into an ISA....is there any real benefit to open and move to a share ISA for me? I would like to start investing approx. £50 per month into shares.

Any advice would be really welcome.

dunstonh

£50 into shares would be expensive with share dealing costs. For small amounts, usinf funds would be cheaper.

topcatk_2

Hi, Whilst I do agree with you... (although I do plan to buy via their scheduled dates to keep the cost down).....I can't see the benefit of an ISA for me unless I'm looking at it incorrectly. I have also saved a not insignificant amount of money from the shareholder perks coming with some of my shares....especially Marstons (as our local pub is one).

jimjames

topcatk wrote: »

Hi, Whilst I do agree with you... (although I do plan to buy via their scheduled dates to keep the cost down).....I can't see the benefit of an ISA for me unless I'm looking at it incorrectly. I have also saved a not insignificant amount of money from the shareholder perks coming with some of my shares....especially Marstons (as our local pub is one).

Without knowing how you are looking at it, it is hard to say if it is incorrect or not.

Putting any investments inside an ISA will keep them free of CGT and income tax for ever (or till the government changes the rules) Outside you could be liable depending on growth and your tax status especially if you are higher rate already.

Read the example in HL Investment times of someone who started out 10+ years ago outside an ISA because it was small amounts and gradually build up funds. Now has £110k outside ISA and potential £40k liable to CGT .

qwer11

dunstonh wrote: »

£50 into shares would be expensive with share dealing costs. For small amounts, usinf funds would be cheaper.

Can anyone let me know where is the cheapest place to start investing small amounts (£50-£100) into funds every month. I checked x-o isa but they seem expensive for investing small amounts! HL charge £2 per month which is also a lot...

Thank you.

ColdIron

qwer11 wrote: »

HL charge £2 per month

Only for some trackers

qwer11

ColdIron wrote: »

Only for some trackers

Sorry. Yes I meant index tracker funds.

dunstonh

although that pricing will change shortly.

topcatk_2

jimjames wrote: »

Read the example in HL Investment times of someone who started out 10+ years ago outside an ISA because it was small amounts and gradually build up funds. Now has £110k outside ISA and potential £40k liable to CGT .

:eek:

Okay you've convinced me......now I just need to decide which shares ISA!

Archi_Bald

topcatk wrote: »

now I just need to decide which shares ISA!

What you need to decide first is what funds/equities you want to invest in.

The S&S ISA is nothing but a wrapper for your investment.

Although you would be able to find some "ready made" investment selections that come in an ISA wrapper. These are generally very poor value for a number of reasons, incl. the fact that you would have to pay extra for the pre-selection, and they are clearly not tailored to your requirements.

Tears_of_Jenny

dunstonh wrote: »

although that pricing will change shortly.

Are you referring to the H/L £2 per month charge for trackers?
Would you care to elaborate on any price changes?