ISA Maxed out in April

iglad

I have an Investment ISA which will be maxed out at the end of March 2019. I also have aspirate investment account which has about £7k in it.

Am I correct in assuming that I can still add monies to the investment account as the current level of CGT is about £12500 so I've no real need to worry as I can't really see my gains being anywhere near that. Will any dividends paid out in the investment account be taxed?

masonic

Presumably you mean March 2020 because if you maxed it out in March 2019, you'd have another £20k allowance available in the current tax year. If it will be maxed out at the end of March 2020, why not just wait a week or so for the new tax year and a new £20k allowance?

You would only have the possibility of paying CGT if you actually sold from your investment account (and your gain was >£12,000).

You also have a dividend allowance of £2,000 before these would attract any taxation.

iglad

Yes you are correct I mean March 2020 thanks for the confirmation and it's interesting why nobody really mentions the CGT limits as well as an ISA. I didn't know about the dividend allowance.

Ifts

CGT may not be a problem today but one day it may be. Try to use your full ISA allowance first each tax year rather than investing outside the tax wrapper.

Investing through the tax free ISA route is probably one of the best places to hold your investments:

No capital gains tax
No tax on dividends
No record keeping
Can benefit from APS

iglad

Ifts wrote: »

CGT may not be a problem today but one day it may be. Try to use your full ISA allowance first each tax year rather than investing outside the tax wrapper.

Investing through the tax free ISA route is probably one of the best places to hold your investments:

No capital gains tax
No tax on dividends
No record keeping
Can benefit from APS

As it's a £3k investment I think I'll be ok.