Cash isa or SSI isa, 40k to save

DjangoUnchained

I have 40k to use, can't decide whether to use my isa allowance to bung 20k cash into a cash isa and then just drip feed 20 k over the year into a non isa trading account and deal with cgt if and when I take a profit (prepared to leave it 10 or more years), or open a stocks and shares isa and put 20k cash into a non isa fixed rate account. Interested in ideas and thoughts.

masonic

I would always prioritise putting investments into a S&S ISA (or SIPP) as the tax calculations are more complex (CGT, dividend income, equalisation, ERI).

lr1277

Other factors might be:
Would the interest earned take you above your personal savings allowance?
Do you have any income taxed at source?
If yes to both are you ok with your tax code changing such that your net income is less?

friolento

Would you be able to put the second £20k into your works pension, or into a SIPP?

It would also save you from the admin needed for a GIA

DjangoUnchained

I'm self employed i have a personal pension which is maxed out ie not allowed to put in more than i earn, I'm over my personal savings allowance anyway and pay tax on it.