Bit confused - Vanguard ISA or general account share stocks?

everfor007

My salary is £90k, i want to contribute every year £20k in stocks. Understood in isa, every year i  can contribute max £20K  and i also get tax benefit.  I looked into Vanguard stock share ISA vs General account, it has same level of stock options and withdrawal any time.  I am aware capital gain on Vanguard General account is taxable, need to declare in self assessment every year and in ISA, capital gain is it taxable? Do i need declare ISA capital gain in self assessment every year or not required?
 Anything in ISA rules i am missing or  any limits comparing to General account? Finally Is ISA investment worth every year? Kindly advise

dunstonh

I looked into Vanguard stock share ISA vs General account, it has same level of stock options and withdrawal any time. 

The GIA is unwrapped. i.e. not in a  tax wrapper (ISA, pension, onshore bond, offshore bond etc).

I am aware capital gain on Vanguard General account is taxable, need to declare in self assessment every year

Not necessarily.

and in ISA, capital gain is it taxable?

ISAs are tax free. (although not as tax efficient as pension)

 Finally Is ISA investment worth every year?

It is second in the pecking order behind pension (subject to various objectives that you have not mentioned).

unkle

There is no capital gains due under an ISA, it's all tax free out, CGT, income tax etc, only potentially IHT would be due if your estate was large enough. In essence only use a GIA once you have fully financed your ISA.

MX5huggy

ISA also protects against income tax on income (dividends paid) on the investments held in an ISA. 

But Pension beats ISA.

Albermarle

Unless you already have a high pension provision and/or want to retire rather early , normally for higher rate taxpayers contributing to a pension is much better than to an ISA, 

everfor007

Sorry i am not comparing to pension, i  am trying to compare with Vangaurd General Account (share and stocks) not wtih Vangaurd pension SIPP. 
Already my pension contribution reached to £40k max limit every year,  if i add on ISA on top with pension, still do i get tax benefit in ISA ?

MX5huggy

Yes, you put taxed income into an ISA and then all the gains within it are tax free you can take the money out tax free when you want. Use your ISA allowance before putting any extra into your GIA. Then you can run your GIA in as tax efficient way as possible.

Pensions are nearly always mentioned because people think they are complicated or not for them and ignore them.