British ISA

silvercue

eskbanker said:

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.

Yes, true.  Which is why I said IMO.  I would rather take advantage of an extra £5k if it means I am bit heavier in a certain sector than I would be otherwise.    Reducing tax burden is a real positive.  

orange-juice

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.

Yes, good point. That’d be 20% in uk, rather that ~4% if you were in the one global fund right, if my maths is right..

Hoenir

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?

What's poor productivity and economic performance got to do with attracting and retaining international companies to list on the LSE ?  As for IPO's.  Check the NYSE.  Has been extremely quiet in 2024.  As an investor I've never had an issue in finding quality UK companies. Never been easier to research them and be kept informed than today. 

talexuser

dunstonh 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?

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.

You hit the nail on the head. At first I thought I could transfer the UK part to the new 5k and have 20K available for better performing global/regional. Then I thought if I was not buying any new UK funds what would be the point of doing that if any new 20k was going global/regional anyway. I would probably want to use the 5k if it was there but would probaly go for a UK fund heavy in companies with lots of foreign earnings less dependant on our feeble economy.