Stocks & Shares ISAs

eskbanker

danielquery said:

Hi all,
I'm looking at getting an S&S ISA and pay an amount into it every month. A friend of mine however told me that you have to close your S&S ISA every year to avoid being taxed, whereas I thought I could just keep paying into the same single account every month for years to come as long as I don't exceed the 20k limit per tax year. Can't seem to find anything around these rules, anyone any idea?

You're right and your friend is talking rubbish....

newbiebuyer_3

Hi, Please could someone help with my query regarding Stocks and Shares ISA:
If I deposit £100 with H&L in FY19/20 but don’t buy any shares in FY19/20, and then in FY20/21 I open another account with Barclays. Now in May 2020, can I use the £100 I had deposited to buy shares via H&L platform, whilst I also use Barclays to buy shares to use up my FY20/21 allowance?
Or does this breach the restriction that I cannot invest via two Stocks and Shares ISA platforms in the same financial year?  
Thank you

masonic

newbiebuyer_3 said:

Hi, Please could someone help with my query regarding Stocks and Shares ISA:
If I deposit £100 with H&L in FY19/20 but don’t buy any shares in FY19/20, and then in FY20/21 I open another account with Barclays. Now in May 2020, can I use the £100 I had deposited to buy shares via H&L platform, whilst I also use Barclays to buy shares to use up my FY20/21 allowance?
Or does this breach the restriction that I cannot invest via two Stocks and Shares ISA platforms in the same financial year?  
Thank you

You can do as you suggest. What happens within the ISA wrapper is of no consequence. It is new money paid into the ISA that is subject to restrictions.

Tim_w

Hi 
Any advice welcome!
Im new to investing but trying to get a better return than 1.5% in a cash isa.I’ve put this years allowance (£20.000) in HL, but not picked my Investments yet!!thinking of a stocks and shares Portfolio+ as I’m not very confident at knowing what I’m doing!!,,my plan is to invest £20.000 every year, till it gets to 100.000+ witch will  be in 4 years time to generate an income Stream of roughly 5% plus. I’m thinking of going for income over accumulation as I’m investing to the max in the next 4 years. After 5 April will invest again but with a different platform, Possibly Vanguard!! Any thoughts welcome. Cheers. (Age 55).

ColdIron

Your friend is talking rubbish. Your plan is correct

carrollp

Hi, I have over £300k built up n a Fidelity Stocks & Shares ISA and put in around £1500 a month spread across about 10 funds globally. I have been getting around 10% average return over the years. In the past when there have been Global Stockmarket downturns I had no choice but to just ride it out, but now that you can transfer within the ISA wrapper to Cash I was wondering if it would be a good idea to do this with some or all of my unit trusts for what I think is going to be a bad year or two for the Markets with Coronavirus and Brexit. I could then buy back in when the market bottoms out.
What are the negatives to doing this? It seems logical but no one seems to be talking about it. Any advice appreciated.
Cheers PC.

eskbanker

carrollp said:

now that you can transfer within the ISA wrapper to Cash I was wondering if it would be a good idea to do this with some or all of my unit trusts for what I think is going to be a bad year or two for the Markets with Coronavirus and Brexit. I could then buy back in when the market bottoms out.
What are the negatives to doing this? It seems logical but no one seems to be talking about it.

Timing the market is a great idea in theory but notoriously very difficult to actually do, so most are sensible enough not to try it.  At one end of it, how do you decide when to sell?  Tomorrow, after several days of market drops already, or waiting longer just to be sure?  How do you know it's not going to bounce back next week/month?  Likewise, what makes you think you can identify the bottom of the market?

In terms of rationale, Corona virus does seem to be a credible reason for the current market conditions but in global terms Brexit is an irrelevance.  What made you pick these out from all the other factors affecting global markets, such as trade tensions, military escalations, major weather events, commodities, etc, etc, and what makes you think that you know more than the professional traders who've already driven or exploited value changes before you get to hear about them?

bowlhead99

danielquery said:

Hi all,
I'm looking at getting an S&S ISA and pay an amount into it every month. A friend of mine however told me that you have to close your S&S ISA every year to avoid being taxed, whereas I thought I could just keep paying into the same single account every month for years to come as long as I don't exceed the 20k limit per tax year. Can't seem to find anything around these rules, anyone any idea?

Your friend is talking nonsense. Once the money is inside an ISA it's entirely out of the scope of tax unless you  choose to sell the investments and withdraw the money from the ISA wrapper (in which case the money will no longer be protected from tax, from that point forward, but any income or gains you made while it was tax free will be yours to keep).

You can continue to add new money within your annual allowance each year, whether that's to the same ISA product or to another one you open just for that year. You can also transfer an existing ISA to another provider if you like, but you don't have to.

*edit, sorry i was on mobile and didn't realise this question was from some time ago and had already been answered. Hopefully they will have the date stamps displaying again soon.

Nardge

Hi, on a related theme to that of carolp, today I made a transaction to the effect of a £6000 investment in my Vanguard LifeStrategy ISA. The stock market has since crashed markedly further. Since the transaction is still “pending”, would it be advantageous to cancel it, and then reinvest it a second time, thereby getting more ‘units’ for my £6000? Or are there transaction fees that would make the above move of no actual benefit? 

With Kind Regards

masonic

Nardge said:

Hi, on a related theme to that of carolp, today I made a transaction to the effect of a £6000 investment in my Vanguard LifeStrategy ISA. The stock market has since crashed markedly further. Since the transaction is still “pending”, would it be advantageous to cancel it, and then reinvest it a second time, thereby getting more ‘units’ for my £6000? Or are there transaction fees that would make the above move of no actual benefit?

If it is still pending and possible to cancel, then the unit price you will get will be the current price at the point it executes. Nobody knows whether a future price will be higher or lower than that price.