Stocks and shares ISA

joshparker1911

Albermarle said:

joshparker1911 said:

Wasn't aware of that, but looking at it this SIPP doesn't allow for early retirement in the same way the ISA does there's also taxation on 75% of the money by the looks of things once available unlike the ISA

Typically most people will get 20% tax relief on contributions and pay 15% tax on withdrawal. It works out as a 6.25% tax advantage. However that is a minimum , and if you currently pay any 40% tax or are able to withdraw some of the pension tax free ( under your personal allowance) then the tax benefit is a LOT more.
However the downside is that the money is not accessible until your mid/late Fifties, but very few people retire before then anyway.

To answer your original question. T212 is an investment platform offering an ISA. There are numerous others doing the same, but fee structures can vary.
However the most important point is what investments you choose to buy and hold in the ISA, whichever platform you use.

Thanks for that, I'm a higher rate tax payer so may be worth looking into and splitting between ISA and SIPP to bridge the gap between early retirement and 57.

jimjames

joshparker1911 said:

Albermarle said:

joshparker1911 said:

Wasn't aware of that, but looking at it this SIPP doesn't allow for early retirement in the same way the ISA does there's also taxation on 75% of the money by the looks of things once available unlike the ISA

Typically most people will get 20% tax relief on contributions and pay 15% tax on withdrawal. It works out as a 6.25% tax advantage. However that is a minimum , and if you currently pay any 40% tax or are able to withdraw some of the pension tax free ( under your personal allowance) then the tax benefit is a LOT more.
However the downside is that the money is not accessible until your mid/late Fifties, but very few people retire before then anyway.

To answer your original question. T212 is an investment platform offering an ISA. There are numerous others doing the same, but fee structures can vary.
However the most important point is what investments you choose to buy and hold in the ISA, whichever platform you use.

Thanks for that, I'm a higher rate tax payer so may be worth looking into and splitting between ISA and SIPP to bridge the gap between early retirement and 57.

If you are higher rate taxpayer then SIPP will boost your investments by 40% due to tax relief. Having a mix would be a sensible way to bring that gap as you suggest

Albermarle

joshparker1911 said:

Albermarle said:

joshparker1911 said:

Wasn't aware of that, but looking at it this SIPP doesn't allow for early retirement in the same way the ISA does there's also taxation on 75% of the money by the looks of things once available unlike the ISA

Typically most people will get 20% tax relief on contributions and pay 15% tax on withdrawal. It works out as a 6.25% tax advantage. However that is a minimum , and if you currently pay any 40% tax or are able to withdraw some of the pension tax free ( under your personal allowance) then the tax benefit is a LOT more.
However the downside is that the money is not accessible until your mid/late Fifties, but very few people retire before then anyway.

To answer your original question. T212 is an investment platform offering an ISA. There are numerous others doing the same, but fee structures can vary.
However the most important point is what investments you choose to buy and hold in the ISA, whichever platform you use.

Thanks for that, I'm a higher rate tax payer so may be worth looking into and splitting between ISA and SIPP to bridge the gap between early retirement and 57.

Higher rate tax relief is the gift that gives on giving.
It costs the Treasury Billions and there are always rumours that it will be removed at some point.

Alexland

joshparker1911 said:

Thanks for that, I'm a higher rate tax payer so may be worth looking into and splitting between ISA and SIPP to bridge the gap between early retirement and 57.

Pensions enable you to defer taking the income until you can draw it at a lower tax rate so are usually more advantageous than ISAs for retirement saving except where you may access earlier than the scheme access age.

Also consider if it is better making higher pension contributions via your workplace scheme rather than a SIPP as you may get additional benefits for example your employer may operate Salary Sacrifice to also save the national insurance on pension contributions. Your workplace pension scheme may allow partial-transfers out of lump sums into a SIPP if you want more choice of investments while still remaining an active contributing member.

joshparker1911

Thanks all, seems like the SIPP may be the better option, can I just check contributions are separate to anything related to the stocks and shares isa and also if anyone can recommend any platforms ? Also in terms of claiming the additional tax back via self assement how easy/difficult is this ?

Albermarle

joshparker1911 said:

Thanks all, seems like the SIPP may be the better option, can I just check contributions are separate to anything related to the stocks and shares isa and also if anyone can recommend any platforms ? Also in terms of claiming the additional tax back via self assement how easy/difficult is this ?

The ISA and SIPP/pension contributions are totally unrelated.

If you are already filling in a SA, there is a box that asks for your total gross pension contributions each year. Simple as that. Note 'gross' means your contribution + the tax relief added by the pension provider. So if you add £8000, and the provider adds £2000 basic rate tax relief, you put £10K in the box.