NISA - stocks and shares

d712

Hello


I'm thinking of getting a stocks and shares ISA for the first time. I haven't used any of my allowance for the current tax year so I'll be looking to do this quite soon.


How do I go about doing this? Can I go to a building society and say what I want the ISA to consist of and they take care of the rest or do I make the investments first and then transfer them into the ISA?


Sorry if this is a stupid question but I've never done this before.


Thanks

xylophone

Do you wish to use the whole of your allowance for the current tax year in a stocks and shares ISA or do you wish to split your allowance between cash and stocks and shares?

For example, you might choose to deposit £5000 in a cash ISA - you would just choose your provider and deposit that amount.

You would then know that you could invest £10,000 in a stocks and shares ISA.

You would then choose your platform and then your investments.

The S&S provider does not know how much you have deposited in cash and the cash provider does not know how much you have invested in S&S - for this reason, you might find that the one will say on their web site "You may subscribe up to another £10,000" and the other will say "You may subscribe up to another £5000".

The point is that you know and keep your records so that you do not go over your allowance.

d712

Thanks for the response


I will probably put all £15000 into stocks and shares.


Can I go to a building society and say what I want the ISA to consist of and they take care of the rest or do I make the investments first and then transfer them into the ISA?

Eco_Miser

Do neither!

The second is not allowed - only cash can go into an ISA, the first is not a good idea - the BS would just take an extra fee, and probably has a very restricted list of available investments.

You open an online ISA account with a funds/shares platform, after deciding what you want to invest and checking that the platform carries it, and that their fee structure is suitable for the way you are going to invest, deposit money, usually by debit card, then buy the investments you want.

One place to compare broker platforms is http://monevator.com/compare-uk-cheapest-online-brokers/ . Read the rest of that site, and this board, for tips on what to invest in, how to allocate your investment across different classes, sectors and regions, and much more.

le_loup

d712 wrote: »

I'm thinking of getting a stocks and shares ISA for the first time.

This can be a very good idea, however, for a relatively small amount - £15K - you will not get an IFA so you have to do it yourself. This means a great deal of research that you will have to do on how to do it and what to invest in.
You have been given good links; use them and read and read and read. Then dip your toe in and then read some more.

d712

Eco_Miser wrote: »

only cash can go into an ISA

I'm sorry but I don't understand, I've always been under the impression that there are two types of ISA; cash and stocks and shares.

bowlhead99

d712 wrote: »

I'm sorry but I don't understand, I've always been under the impression that there are two types of ISA; cash and stocks and shares.

Yes, as mentioned above. But you can't do what you suggested which is buy stocks and shares and then put them in to the isa.

You open up a S&S type of ISA, then you buy stocks and shares within that ISA. You can't fund the ISA by putting your own stocks and shares into it. You fund the ISA with cash. With a cash ISA you leave it as cash, while with a S&S ISA you spend the cash on buying stocks and shares and /or investment funds within the ISA wrapper.

d712

Thanks for the responses


My ISAs are with Halifax. I've tried the link from Eco Miser and it lists Halifax Share Dealing. The link took me to that and the Halifax Self-Select Stocks and Shares ISA.


Does anyone have experience of this or know of its reputation? The fees seem reasonable.

d712

Well it was similar to the other fees on the monevator site that listed the cheapest online brokers including Halifax Share Dealing.

ColdIron

It depends on how you intend to use it. If you just want to put a lump sum in and leave it then the annual fee is good but if you want to add regularly to it, say monthly, then the dealing fees rack up over time. You need to work out what you want to invest in (in some detail), decide how to fund it and then at the very end choose a platform that suits what you want to do

Try putting in different numbers into the link below to get an idea of how charges differ depending upon what you are trying to do

http://www.comparefundplatforms.com/

d712

Thanks for the response. What I'm looking to do is put in a lump sum on a yearly basis, I won't be tinkering with it.