Investing (stocks/crypto etc) and the £16,000 savings limit on ESA

Sun_pours

Hello all, I have some questions and would be very grateful if anybody is able to provide answers to these.

Are you allowed to buy stocks/shares/crypto etc while on ESA? 

If you are, I have a few more questions regarding the details.

I have savings well short of the £16,000 savings limit allowed on esa. A friend of mine has twice now made some very good returns off of relatively small sums invested. They seem to have a good eye for picking the right things to buy at an early stage and I am considering investing a small amount in a few recommendations after missing out the last few times.

The problem is this: what happens if I am lucky enough to have the stocks/crypto I potentially invest in appreciate in value to the point where they would be worth £16,000 or more? Is this considered (savings) and at that point I would have to sell the stocks to not go over the £16,000 limit? If so, this seems silly to me because looking at the price of bitcoin for example over the last few years I can see it's been worth anything from around £5,000 to £70,000 at various different points, so what would be the point in having to sell something if it hit £16,000 if it could potentially be worth say, twice that a month or two later? In essence, are you allowed to “hold” a stock/crypto even if you are fortunate enough to see it exceed £16,000 in the hopes that it would be worth more than that months/years later?

One last question - this is daydream thinking but if something I were to buy went on to “do a bitcoin” (pigs might fly!)  and one day be worth many, times more what I paid for it, something like £150,000, can you in that scenario sell the stock/crypto, immediately use the money to buy a cheap 1 bedroom flat for example then continue to remain on esa providing your savings were again below £16,000 or would you have to come off esa then use the newly acquired £150,000 then  reapply now your savings are below £16,000?

The answers to these questions would decide on whether I’d bother to risk investing a small amount of my money so any insight would be greatly appreciated.

Thank you  

Alice_Holt

The value is counted as capital, so needs to be reported to UC if total savings / capital is over £6k.
https://www.turn2us.org.uk/Benefit-guides/Universal-Credit-income-and-capital/Capital-Savings

If you sold the bitcoin then you would have cash. That also needs reporting when over £6k (in total).

Personally I wouldn't go anywhere near crypto, and S & S funds are long-term investments (10 yr plus).
Post on the investment / savings board for more considered opinions on this.
Look at Help to Save instead (comes with a 50% bonus).  

gbhxu

Didn't think you could do Help To Save if you get ESA?

Does buying gold count as savings for ESA?

poppy12345

gbhxu said:

Didn't think you could do Help To Save if you get ESA?

Not if claiming just ESA. If they are claiming WTC or child tax credits and entitled to WTC they can. https://www.gov.uk/get-help-savings-low-income/eligibility

kaMelo

gbhxu said:

Didn't think you could do Help To Save if you get ESA?

Does buying gold count as savings for ESA?

What would you be trying to achieve by buying gold?

tomtom256

kaMelo said:

What would you be trying to achieve by buying gold?

I think you know the answer, but thats moving the topic away from the OP's original questions and moving it into a discussion.