Using two brokers?

snowqueen555

Is there any reason I couldn't use x-o.co.uk to buy shares using a normal account (because of the cheap dealing charges), and then setting up a S&S ISAwith Hargreaves and Lansdown? Is there any benefit to buying shares within an ISA?

Thanks

Ifts

Nothing stopping you from using two brokers, I use three different ones.

snowqueen555 wrote: »

Is there any benefit to buying shares within an ISA?

Tax free.

No CGT to pay on any profits within an ISA.

Any dividends you receive within a S&S ISA do not count towards the new (2016/17) £5K tax free dividend allowance.

No need to keep any records for the tax man.

Vortigern

snowqueen555 wrote: »

Is there any reason I couldn't use x-o.co.uk to buy shares using a normal account (because of the cheap dealing charges), and then setting up a S&S ISAwith Hargreaves and Lansdown? Is there any benefit to buying shares within an ISA?

Why not buy shares in an X-O ISA? You still have the cheap dealing charge and there's no ongoing fee (unlike HL)

Both HL and X-O have ISA closure charges

The benefits of holding shares within an ISA are:

• No additional tax to pay on dividends
• No Capital Gains Tax
• No need to keep records for your tax return

But:

• A basic rate taxpayer does not pay additional tax on dividends
• There's a new dividend tax allowance coming next year
• CGT can be managed by selling before your gain becomes taxable

That just leaves the record keeping, which you would probably want to do anyway.

Which shares are you planning to buy?

Linton

The main reason why one shouldnt have multiple brokers is that it makes moving money between different investments very messy. In the end you may find that all you accounts look much the same. For example in your case what if you wanted to sell some shares in order to buy some funds?

On the other hand on reason that more than one is good to guard against long term technical problems.

EdGasket

A good reason to have multiple brokers is to protect your money if one of them goes belly up. Best not to have too much with any one institution. I know nominee accounts are supposed to be ring-fenced but who exactly is going to sort out the mess if your broker is no longer around?

snowqueen555

Vortigern wrote: »

Why not buy shares in an X-O ISA? You still have the cheap dealing charge and there's no ongoing fee (unlike HL)

Both HL and X-O have ISA closure charges

The benefits of holding shares within an ISA are:

• No additional tax to pay on dividends
• No Capital Gains Tax
• No need to keep records for your tax return

But:

• A basic rate taxpayer does not pay additional tax on dividends
• There's a new dividend tax allowance coming next year
• CGT can be managed by selling before your gain becomes taxable

That just leaves the record keeping, which you would probably want to do anyway.

Which shares are you planning to buy?

This is all confusing to me, I will no be buying huge amounts so will any of this apply to me?

There are a few companies I'd like to buy and keep for several years.

bigfreddiel

snowqueen555 wrote: »

This is all confusing to me, I will no be buying huge amounts so will any of this apply to me?

There are a few companies I'd like to buy and keep for several years.

Just go for X-O, and use an ISA - keep it simple

fj

Ifts

snowqueen555 wrote: »

This is all confusing to me, I will no be buying huge amounts so will any of this apply to me?

As previous poster said go for the ISA account, it may only be small amounts now but in the future things may be different for you (and it wont effect your £5k tax free dividend allowance).

I wish I had brought mainly through my S&S ISA when I first started out - you live and you (hopefully) learn!

snowqueen555

I also wanted to to invest in funds as well which was the problem!

Thanks

Vortigern

snowqueen555 wrote: »

I also wanted to to invest in funds as well which was the problem!

In that case, you can do what you asked about - buy shares outside an ISA with XO, and buy funds in an ISA with HL, or any other platform.

You didn't mention funds in your OP!

Glen_Clark

Ifts wrote: »

I wish I had brought mainly through my S&S ISA when I first started out - you live and you (hopefully) learn!

Same here, but things were different then. ISA/PEP charges were higher, there were no additional tax on dividends so you were paying high charges just to avoid Capital Gains Tax which you wouldn't be liable for anyway unless you sold too many shares at once.
Osborne has moved the goalposts with his double taxation of dividends.