British ISA

talexuser

It looks like we will have an extra 5k ISA allowance some time soon. If this is supposed to encourage UK investment will it work? I dumped my UK funds for global after the referendum and the result since has been very much better than the original. The only UK fund I have left is Evenload Income which I kept just because I have had it for nearly 10 years and it has done very well for me, but is now a very small % of the whole. This seems a desperate attempt to up the London market which has lost out in IPOs etc and hardly addresses the fundamental problems of our poor productivity and economic performance. Will you be tempted?

masonic

What makes you think it will be soon (or at all)?

I would move my UK small cap investment trusts into it if they qualify. Those are my only UK exposure at present, although if bonds count that would provide an alternative option. It is handy using regional funds rather than global.

wmb194

talexuser said:

It looks like we will have an extra 5k ISA allowance some time soon. If this is supposed to encourage UK investment will it work? I dumped my UK funds for global after the referendum and the result since has been very much better than the original. The only UK fund I have left is Evenload Income which I kept just because I have had it for nearly 10 years and it has done very well for me, but is now a very small % of the whole. This seems a desperate attempt to up the London market which has lost out in IPOs etc and hardly addresses the fundamental problems of our poor productivity and economic performance. Will you be tempted?

Judging by the vague budget discussion document it won't be for at least another year, so possibly the 25/26 tax year, and there's no guarantee that the idea won't be ditched. I have investment trusts and individual companies presently in GIAs that'll probably qualify so, if it's introduced, why not?

dunstonh

It looks like we will have an extra 5k ISA allowance some time soon. If this is supposed to encourage UK investment will it work?

Personally, I doubt it.   For those with portfolios, they will just put their UK holdings in the British ISA and their global holdings in the normal ISA.

The consultation does ask if UK gilts and bonds should be included

I wouldn't be surprised if Labour ditched it before inception.

ColdIron

I will be just for the extra allowance. It may not suit everyone but I see it as useful for income investors

If it ever sees the light of day I'll buy some extra UK income funds that I already have. Alternatively I may sell some of my UK income funds held elsewhere, buy them in the UK ISA and replace them with whatever I decide at the time. Either way it'll be handy to have some extra tax free income

We need to see what comes out of the consultation in terms of: what qualifies, company shares, collective investments such as investment trusts, corporate bonds, cash, transfers, which platforms will provide them etc

Of course it may come to nothing and if it does we may have to wait some time
UK_ISA_Consultation.pdf

orange-juice

If you had the money, maybe 20k in a World (ex-uk) index in your S&S ISA and 5k in a FTSE all-share tracking index?

subjecttocontract

I don't think we will see it anytime soon. I doubt any incoming Labour coalition Government will want to make it one of their priorities.

silvercue

Unfortunately, it looks like it will take some time.  I would love to be able to take advantage of this in the coming tax year, but not sure that will happen.

Qyburn

orange-juice said:

If you had the money, maybe 20k in a World (ex-uk) index in your S&S ISA and 5k in a FTSE all-share tracking index?

That would start to build up quite an overweight in the UK. Depending on how much you already have invested of course.

silvercue

Qyburn said:

orange-juice said:

If you had the money, maybe 20k in a World (ex-uk) index in your S&S ISA and 5k in a FTSE all-share tracking index?

That would start to build up quite an overweight in the UK. Depending on how much you already have invested of course.

But it is an "overweight" in a tax free wrapper that you can't invest in anything else that tax year in the same wrapper.  So still worthwhile IMO.  

eskbanker

silvercue said:

Qyburn said:

orange-juice said:

If you had the money, maybe 20k in a World (ex-uk) index in your S&S ISA and 5k in a FTSE all-share tracking index?

That would start to build up quite an overweight in the UK. Depending on how much you already have invested of course.

But it is an "overweight" in a tax free wrapper that you can't invest in anything else that tax year in the same wrapper.  So still worthwhile IMO.  

But to use the usual phrase, that's letting the tax tail wag the investment dog!  That's not to say that it's not worth doing, but anyone doing this needs to ensure that it's consistent with their investment objectives, strategy, etc, rather than simply looking to use a facility for the sake of it.