Stocks and Shares ISA for beginner

GeoffTF

droopsnoot said:
If your GIA has risen in value, as I understand it when you transfer that to an ISA, you will be liable for capital gains tax, and while you have the GIA you may need to declare it on your self-assessment. Given the option, I'd start it in the ISA if you can.

No. He will not be liable for CGT provided that he does not exceed his £12,300 allowance. He will not have to fill in a tax return either, unless he exceeds one of his allowances (or has to fill one in for another unrelated reason). There is little point in paying for an ISA until he needs one.

LouP25

GeoffTF said:

No. He will not be liable for CGT provided that he does not exceed his £12,300 allowance. He will not have to fill in a tax return either, unless he exceeds one of his allowances (or has to fill one in for another unrelated reason). There is little point in paying for an ISA until he needs one.

Will Freetrade tell me what my gains are? Are they going to tell me when it's close to £12000 ? I have a small starting business, I'm a video artist, so I will have to sum up the gains actually. I had read some forums, in order to transfer from Freetrade GIA to Freetrade ISA people need to sell everything manually and buy within ISA. I guess it won't be too much hassle. But what happens if I sell, and the price goes up the next day, as apparently it takes a few days in Freetrade for money to become available after a sale. I will have to wait until it drops again? Wow, this stock market business is beginning to make sense to me 

GeoffTF

LouP25 said:

GeoffTF said:

No. He will not be liable for CGT provided that he does not exceed his £12,300 allowance. He will not have to fill in a tax return either, unless he exceeds one of his allowances (or has to fill one in for another unrelated reason). There is little point in paying for an ISA until he needs one.

Will Freetrade tell me what my gains are? Are they going to tell me when it's close to £12000 ? I have a small starting business, I'm a video artist, so I will have to sum up the gains actually. I had read some forums, in order to transfer from Freetrade GIA to Freetrade ISA people need to sell everything manually and buy within ISA. I guess it won't be too much hassle. But what happens if I sell, and the price goes up the next day, as apparently it takes a few days in Freetrade for money to become available after a sale. I will have to wait until it drops again? Wow, this stock market business is beginning to make sense to me 

No, you will have to work out your own gains. To transfer to an ISA, you put some money in the ISA, sell some stock outside the ISA and buy the same stock at almost the same time in the ISA. You then collect the proceeds of the sale, and repeat as many times as you need to. You will need to learn something about tax:

https://www.thetimes.co.uk/money-mentor/article/tax-shares/

If that looks too difficult, use an ISA.

Albermarle

GeoffTF said:

LouP25 said:

GeoffTF said:

No. He will not be liable for CGT provided that he does not exceed his £12,300 allowance. He will not have to fill in a tax return either, unless he exceeds one of his allowances (or has to fill one in for another unrelated reason). There is little point in paying for an ISA until he needs one.

Will Freetrade tell me what my gains are? Are they going to tell me when it's close to £12000 ? I have a small starting business, I'm a video artist, so I will have to sum up the gains actually. I had read some forums, in order to transfer from Freetrade GIA to Freetrade ISA people need to sell everything manually and buy within ISA. I guess it won't be too much hassle. But what happens if I sell, and the price goes up the next day, as apparently it takes a few days in Freetrade for money to become available after a sale. I will have to wait until it drops again? Wow, this stock market business is beginning to make sense to me 

No, you will have to work out your own gains. To transfer to an ISA, you put some money in the ISA, sell some stock outside the ISA and buy the same stock at almost the same time in the ISA. You then collect the proceeds of the sale, and repeat as many times as you need to. You will need to learn something about tax:

https://www.thetimes.co.uk/money-mentor/article/tax-shares/

If that looks too difficult, use an ISA.

For inexperienced ( or even more experienced() investors it is much simpler just to use an ISA, often they do not cost hardly any more than a GIA account. if any more at all.

george4064

Albermarle said:

GeoffTF said:

LouP25 said:

GeoffTF said:

No. He will not be liable for CGT provided that he does not exceed his £12,300 allowance. He will not have to fill in a tax return either, unless he exceeds one of his allowances (or has to fill one in for another unrelated reason). There is little point in paying for an ISA until he needs one.

Will Freetrade tell me what my gains are? Are they going to tell me when it's close to £12000 ? I have a small starting business, I'm a video artist, so I will have to sum up the gains actually. I had read some forums, in order to transfer from Freetrade GIA to Freetrade ISA people need to sell everything manually and buy within ISA. I guess it won't be too much hassle. But what happens if I sell, and the price goes up the next day, as apparently it takes a few days in Freetrade for money to become available after a sale. I will have to wait until it drops again? Wow, this stock market business is beginning to make sense to me 

No, you will have to work out your own gains. To transfer to an ISA, you put some money in the ISA, sell some stock outside the ISA and buy the same stock at almost the same time in the ISA. You then collect the proceeds of the sale, and repeat as many times as you need to. You will need to learn something about tax:

https://www.thetimes.co.uk/money-mentor/article/tax-shares/

If that looks too difficult, use an ISA.

For inexperienced ( or even more experienced() investors it is much simpler just to use an ISA, often they do not cost hardly any more than a GIA account. if any more at all.

Just to add, even investors with small portfolios (to begin with) might not go anywhere near the CGT or dividend allowances. Given the long-term nature of investing, it would be expected that over time the portfolio will grow in value such that CGT would become a problem if held outside a tax wrapper.

So all in all, it’s best to start an investment portfolio within an ISA rather than outside, so you eliminate any potential issues down the road by being sheltered from any potential tax implications.

LouP25

thank you all so much. I will start my investment portfolio within an ISA rather than outside. I definitely don't see myself calculating all that tax correctly, I know myself well enough    It may work for some other people though.

GeoffTF

LouP25 said:
I have a small starting business, I'm a video artist, so I will have to sum up the gains actually.

Perhaps you should be thinking about a pension rather than an ISA.

eastmidsaver

GeoffTF said:

LouP25 said:
I have a small starting business, I'm a video artist, so I will have to sum up the gains actually.

Perhaps you should be thinking about a pension rather than an ISA.

always a good idea to have both ISA and SIPP.   

LouP25

eastmidsaver said:

GeoffTF said:

always a good idea to have both ISA and SIPP.   

Its funny you mentioned SIPP, as today I was researching LISA and SIPP and cannot get my head around as to self assessment with them. Both are interesting. I already have a pension with Aegon and I left my previous employer, but the pension is invested risk 5 out of 5 Aegon fund. If I want to contribute into my pension, again the self assessment question pops up, I need to make sure I get that 20% from the government somehow. Something I will have to research. I'm pretty excited about my s&s ISA decision for now ))

GeoffTF

One way or another, you are going to have to learn the basics, or pay out a huge amount of money in professional fees to get other people to do everything for you. If you want a good return on your money you need to control your costs. Here is a book that addresses the investment basics:

https://www.amazon.co.uk/DIY-Investor-started-investing-financially-ebook/dp/B072N85RJH