Funds or stocks & shares ISA

Prism

timshaw wrote: »

I have read that there is a limit of £1000 on personal savings allowance

Thats for cash. Your first question referred to funds or stocks and shares which this doesn't apply to.

lpgm

timshaw wrote: »

My example is that I’m looking at H&L and they have some fund options or they also have a S&S ISA.

HL, confusingly, calls its non-ISA, ie taxable, account the 'Fund and Share Account'. As others have already explained, shares and funds can also go into HL's 'Stocks and Shares ISA', the tax-free one.

lpgm

timshaw wrote: »

I have read that there is a limit of £1000 on personal savings allowance

That £1,000 covers interest, from bonds or savings accounts. You also get £2,000 to cover dividends. As others have already explained, you don't need to worry about income tax or capital gains tax, and you don't have to report your investments to HMRC, if you go for an ISA and buy your shares, bonds, and funds in there.

AnotherJoe

lpgm wrote: »

HL, confusingly, calls its non-ISA, ie taxable, account the 'Fund and Share Account'. As others have already explained, shares and funds can also go into HL's 'Stocks and Shares ISA', the tax-free one.

Yes, I suppose it would be more consistent to call them similar names with or without ISA appended, eg Stocks and shares account, stocks and shares isa, however then you'd probably get people who wanted an isa opening an "account" by mistake and visa versa.
Given the OP is confused about the difference between a fund , and an account that can hold funds, there's a limit to what can be coped with. I would hope OP would understand difference between £100 cash and a bank account in which you can put £100 cash. This is no different except its funds instead of cash, and you cant just hold a "fund "naked" whereas cash can be held as such, a fund has to be "somewhere", either in an account, or an ISA.

timshaw

AnotherJoe wrote: »

Yes, I suppose it would be more consistent to call them similar names with or without ISA appended, eg Stocks and shares account, stocks and shares isa, however then you'd probably get people who wanted an isa opening an "account" by mistake and visa versa.
Given the OP is confused about the difference between a fund , and an account that can hold funds, there's a limit to what can be coped with. I would hope OP would understand difference between £100 cash and a bank account in which you can put £100 cash. This is no different except its funds instead of cash, and you cant just hold a "fund "naked" whereas cash can be held as such, a fund has to be "somewhere", either in an account, or an ISA.

AnotherJoe, your responses have sounded pretty condescending. If you're not able to give advise in a constructive, positive manner, then don't bother at all. You strike me as a 'Keyboard Warrior'. Or maybe I've got it wrong and you just don't have that 'Social Gene' even on-line

elcaminante

On this topic can anyone tell me how it works with tax if I have already maxed my 19/20 ISA allowance and want to put more cash into a Vanguard LIfeStrategy fund outside of an ISA? Thanks.

AnotherJoe

Elcaminante, there's only tax to pay if you make more than the capital gains limit when you sell, or if the dividends along with any other Dividends from other sources exceed the dividend allowance. And you'd pay the tax by declaring your gains to HMRC rather than the company you hold it with, say HL or ii, doing anything. They will provide you with a yearly (tax year) summary

Aidanmc

elcaminante wrote: »

On this topic can anyone tell me how it works with tax if I have already maxed my 19/20 ISA allowance and want to put more cash into a Vanguard LIfeStrategy fund outside of an ISA? Thanks.

You could open a regular fund & share account, non isa, with your current platform provider and invest in the lifestrategy outside of isa
Sorry, didnt read your post correctly, see now your question was regarding tax

elcaminante

Thanks - is it necessary to declare the gain to HMRC annually or only when selling - and would I have to declare it even if it falls below taxable thresholds?

AnotherJoe

elcaminante wrote: »

Thanks - is it necessary to declare the gain to HMRC annually or only when selling - and would I have to declare it even if it falls below taxable thresholds?

Gain isn't counted, indeed "doesn't exist", until you sell. You aren't taxed on "paper gains".

If £12k is the CGT limit, CGT doesn't need to be declared until it reaches the threshhold or the amount you sell is 4x the threshold. eg if you make £11.5k dont declare unless you sell £48k (eg £12k x 4), but make £13k on selling £47k, declare.