Daves 5 year plan

djt1959

RickyC_IFSWP wrote: »

With the terminology used, I presume the dealing account refers to an account used to purchase direct share investments.

You can actually simply hold similar investments as your S&S ISA (i.e. in funds) with an "Investment Account", which works the same way but just isn't in an ISA wrapper. It would actually make more sense to use this account to feed future ISA allowances.

So if Ihave got this right i could open an additional Stocks &Shares iISA and put £500 a month into it until next April (which would give me £5000) and then transfer it into an ISA for 2015/16 and by 2016 i would have £11000 in the new ISA. I am starting to "love this saving game"

Dave:T

innovate

The ISA allowance is £15K per person this tax year. If you max it in July, you can't put any more in before the next tax year.

You would also not normally transfer an S&S ISA each financial year. there is generally no need to do so, and the charges could be prohibitive.

You could invest in any funds etc in a normal dealing account and then 'bed and ISA' up to £15K (or whatever the limit might be) next tax year. Again, there might be charges involved, so check out before you do that. It might just work out cheaper if you keep the money in cash. But you might see some big gains in equities between now and next April, which might make any charges irrelevant. Your choice.

RickyC_IFSWP

djt1959 wrote: »

So if Ihave got this right i could open an additional Stocks &Shares iISA and put £500 a month into it until next April (which would give me £5000) and then transfer it into an ISA for 2015/16 and by 2016 i would have £11000 in the new ISA. I am starting to "love this saving game"

Dave:T

Only one S&S ISA per tax year.

However, if you replaced the first "Stocks and Shares ISA" in your post with an "Investment Account" or something similar, then that would be near perfect.

Once your ISA allowance replenishes, you simply encash proceeds from your investment account to fund your ISA... this is known as "Bed and ISA" and some providers have a smooth automatic process for this.

innovate

RickyC_IFSWP wrote: »

Only one S&S ISA per tax year.

However, if you replaced the first "Stocks and Shares ISA" in your post with an "Investment Account" or something similar, then that would be near perfect.

Once your ISA allowance replenishes, you simply encash proceeds from your investment account to fund your ISA... this is known as "Bed and ISA" and some providers have a smooth automatic process for this.

You can actually have (= make deposits into) two ISAs each tax year - a cash one and an S&S one. Deposits must not exceed the annual allowance.

'Bed and ISA' might come at a charge - best checked before committing to anything.

RickyC_IFSWP

innovate wrote: »

You can actually have (= make deposits into) two ISAs each tax year - a cash one and an S&S one. Deposits must not exceed the annual allowance.

'Bed and ISA' might come at a charge - best checked before committing to anything.

That's great... except I said one S&S ISA.

jimjames

djt1959 wrote: »

1) on the 1st of July move £15000 out of savings and put into a Stocks & Shares Isa

2) as above move another £15000 and put into a Stocks & Shares Is a in kmy wife's name .

Any particular reason you're waiting till then?

The ISA allowance is currently £11880 so you can always use that now and top up later.

Unlike cash ISAs the difference between the old and new limits isn't significant.