Flexible ISA and Investment Question

masonic

MoneyMan01 said:

Interesting you say that, as that is almost the complete opposite effect they’re wanting to have. 

Really avoiding trying to get into it, but it feels as though they want more people to invest, rather than get the tax wrapper benefits of the cash ISA.

It does beg the question why, if that is what they want, they don’t go down the route of educating more people on investing, in terms of even school, but without getting off topic I’ll leave it at that. It’s territory I really don’t like getting into conversations on, as people will generally always have extremely passionate opposing views on this kind of thing. 

Anyone have their money stored in Monaco? 

It started with investment firms in the city lobbying for the change to encourage investment in UK equities to try and boost the UK stockmarket. However, the UK makes up less than 5% of global equities and most would take a global view with little to no home bias. There doesn't seem to be any talk of forcing people into UK equities (yet), and in any case defining that term would be difficult, but a carrot rather than a stick would probably have been preferable. Agree entirely that an education piece is missing.

jimjames

MoneyMan01 said:

If, in one Flexible Cash ISA there was £80k, built up from multiple years, and another Flexible Cash ISA from this tax year that has £20k in, could you in theory withdraw that £100k from both, invest it, and then before the end of the tax year, sell the investments, in the hope it made, let's say 10% for example, and deposit the £80k back into the Flex Cash ISA, and the £20k back into the current Flex Cash ISA?

This seems a very over complicated way to invest. Rather than taking money out of a tax free wrapper, hoping to make a taxable investment gain and then pay it back in, why wouldn't you just have that money in a S&S ISA to start with so the whole thing can be done without worrying about flexible ISA rules or tax?

MoneyMan01

Yes, I now see that I could just transfer a portion of the Flex Cash ISA from previous tax years, to a S&S ISA and not lose the tax wrapper.

Sovereign_Hunter_999

Yes you could definitely do that