Grexit and the markets?

ChesterDog

If we were to sell everything whenever a cliff-edge seemed to be imminent, then we would be behaving like the oft-quoted typical DIY investor; he who is always in and out of the market and wrecks his returns in the process.

WobblyDog

I won't be changing my usual drip-feed behaviour. I suspect that even if I correctly predicted which way the market is going to move, it would move before I could buy or sell my S&S ISA.

Looking on the bright-side, my monthly drip-feed purchase will happen tomorrow, so I might benefit from the lower prices a bit.

ChesterDog

Wobbly's point (as a fellow dog, I hope referring to you in that manner will not be considered presumptuous) is very pertinent - you will only see coming what the market saw first. Too late on both the downs and also the ups to manage things as you would wish.

masonic

ColdIron wrote: »

I think Osborne stopped this in 2014 in his ISA shake up

I thought that as well, but HL still seem to be deducting 20% tax from its current and future cash interest rates if this page is to be believed.

Archi_Bald

masonic wrote: »

I thought that as well, but HL still seem to be deducting 20% tax from its current and future cash interest rates if this page is to be believed.

If they do still withhold any tax on interest, they are contravening the HMRC Guidance:

7.51 Interest paid on cash on deposit held in a stocks and shares ISA is not subject to the Tax Deduction Scheme for Interest and should be credited by the deposit-taker or building society without deduction of tax.

bowlhead99

masonic wrote: »

I thought that as well, but HL still seem to be deducting 20% tax from its current and future cash interest rates if this page is to be believed.

You're misunderstanding their page, but yes their page should be believed. Because the third line down of its introductory text, before you even get to the table of rates, says:

Interest within Stocks & Shares ISAs, Cash ISAs and Junior ISAs is paid gross.

So then when they show you the table of interest rates, you know you should only be looking at the gross column and not the net, if you are using an ISA rather than an unwrapped 'fund and share' account.

Archi_Bald wrote: »

If they do still withhold any tax on interest, they are contravening the HMRC Guidance:

It's fine: they don't.

masonic

bowlhead99 wrote: »

So then when they show you the table of interest rates, you know you should only be looking at the gross column and not the net, if you are using an ISA rather than an unwrapped 'fund and share' account.

Ah, yes they've bundled the taxable fund and share account in with the tax free ISA accounts. I read the footnotes quite carefully (wrongly thinking it would be covered there if anywhere), but didn't see the comment in the middle of the blurb above the table. I think they could do with splitting the F&S account out into another table as what they have done is quite confusing.

bowlhead99

I think if you just know that you don't pay tax on interest, dividends or gains made inside an ISA, which is the whole point of having an ISA - then there's no point showing a whole extra table and making people scroll down an extra page to see everything. They split out tables for SIPPS and Cash ISAs and managed accounts because they actually have different gross rates.

And frankly if you're worried about whether your £50,000 of uninvested cash earns £25 a year or £20 a year because you're not sure if it will get paid the 0.05% gross or net... you're probably focussing on the wrong things in life.

masonic

bowlhead99 wrote: »

And frankly if you're worried about whether your £50,000 of uninvested cash earns £25 a year or £20 a year because you're not sure if it will get paid the 0.05% gross or net... you're probably focussing on the wrong things in life.

My £50,000 of uninvested cash might be sitting on the sidelines waiting to be pushed into GREK

tg99

Sunday markets on IG currently indicating falls since Friday's close of approx 2.5% ftse, 1.7% Dow , 4% dax

Anyone's guess as to how this week goes I think. Grexit may yet be avoided if Greeks vote Yes on Sunday and capital controls / banks hols prevent banks going bust before then. If markets start going after other peripheral European countries then things could get even more interesting albeit would expect a big ECB response in that scenario to cap bond spreads etc.