Investing

NebulaNova

Hi, my cash ISA is maxed out for this year and will be for the new tax year when I fund it, but I'm wanting to put £50 or so away in something similar to a stocks and shares ISA. I'm aware I can't though as my cash ISAs are maxed out.

Can I still open a S&S ISA or is there something else I can go for?

Thanks

eskbanker

What do you mean by "something similar to a stocks and shares ISA" for £50, i.e. what exactly are you trying to achieve?

You could open a standard GIA (general investment account) as an alternative - you wouldn't benefit from the tax advantages of an ISA but these would be negligible anyway at that level of funding.

A pension would be an alternative tax wrapper, not dissimilar to an ISA except for the fact that access isn't permitted until 57.

Or you could fund your cash ISA with £19,950 in 2026/27 and put the other £50 in a S&S ISA.

Or you could partially transfer money from cash to S&S ISA…

NebulaNova

https://forums.moneysavingexpert.com/discussion/comment/81925553#Comment_81925553

I mean investing so that it could increase more. I'm aware I'd pay tax if we were talking thousands but it's mainly for a bit of fun to see how it increases each day. A bit like a S&S ISA.

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81925566#Comment_81925566

Sounds like a GIA would fit the bill then, but it won't take long to understand that it doesn't increase each day! Fluctuations are both upwards and downwards with investments, and how you handle the latter is a key learning experience….

Yorkie1

What does OP need to know about taxation of a GIA?

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/81925597#Comment_81925597

The main things to be aware of include:

1. The need to keep detailed records of all transactions, so best to download all contract notes, etc, from the platform in case of later access issues
2. Investment growth is subject to capital gains tax, which only needs to be calculated when selling
3. Dividends from investments are subject to income tax
4. For both 2 and 3, there are tax allowances, of £3K and £500 respectively.

None of these is particularly significant at this stage though, but worth being aware of these factors as the journey continues, especially as none of them affects S&S ISAs - if anything does seem onerous, it may be worth using a small chunk of the ISA allowance for S&S, rather than using it all for cash and only investing unwrapped…

jimjames

Hi, my cash ISA is maxed out for this year and will be for the new tax year when I fund it, but I'm wanting to put £50 or so away in something similar to a stocks and shares ISA. I'm aware I can't though as my cash ISAs are maxed out. Can I still open a S&S ISA or is there something else I can go for?

It would be far more sensible from a tax perspective to leave £50 or whatever out of your cash ISA and put that into a S&S ISA. For £50 it won't really make any difference but investments are far better in tax shelter to avoid all the different taxes whereas cash only may attract income tax on interest over the limit

Slinky

If this £50 is the total amount you plan to invest, quite a significant percentage of that money will be lost in trading fees in a lot of cases.

InvesterJones

https://forums.moneysavingexpert.com/discussion/comment/81925821#Comment_81925821

Only if you need to pay trading fees. There are plenty of platforms where you don't.

Beddie

Open a General Investment Account, such as Trading212. No platform fees, no cost to buy and sell. Pick a global ETF and get investing!

Yorkie1

https://forums.moneysavingexpert.com/discussion/comment/81925938#Comment_81925938

But there will be tax implications sooner or later too