Interest on Stocks and Shares ISAs

Arnie22

I was reading today about the introduction of tax on interest from Stocks and Shares ISAs.

I have held a Stocks & Shares ISA with Halifax for many years, but have never received any interest. So, my question is, are there different types of Stocks & Shares ISAs, those that pay interest and those that do not? I have been checking all the information on these, but cannot find it mentioned anywhere.

QrizB

Have you seen and read the MSE article on this topic? If not, does it help?

https://forums.moneysavingexpert.com/discussion/6673672/mse-news-savers-to-be-charged-for-holding-cash-in-stocks-and-shares-isas-under-new-plans

eskbanker

https://forums.moneysavingexpert.com/discussion/6673779/interest-on-stocks-and-shares-isas

Just to be clear, interest is paid by some on cash balances, so if your money is mostly (or fully) invested then you're unlikely to have significant cash on hand within the account.

Arnie22

Thanks for your reply. I didn't realise you could have a cash balance in a stocks and shares ISA. So this probably does not affect me.

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/82046443#Comment_82046443

Exactly. It's designed to prevent people getting around the future £12k cash isa limit by just dumping their cash into a s&s isa.

kinger101

I might be missing something but it seems like a very large hammer for a very small nut.

The cash ISA allowance is being reduced by 8k so it is not as if theres still not a home for cash.

But even if I did want the full 20k in cash, this doesn't compel me to buy UK stocks inside an ISA.

id just but a gilt etf instead.

p00hsticks

https://forums.moneysavingexpert.com/discussion/comment/82046443#Comment_82046443

It depends on what you are invested in - my ISA portfolio has a number of funds / shares that pay dividends in cash, and it's up to me to decide how I want to invest them. I'm not always particularly quick at dongi so, so currently have a £5k+ cash balance sat there.

dunstonh

I have held a Stocks & Shares ISA with Halifax for many years, but have never received any interest.

If this is a legacy Stocks and Shares ISA with Halifax, then you wouldn't have received any platform interest. As you wouldn't be on a platform.

 are there different types of Stocks & Shares ISAs, those that pay interest and those that do not?

No, there's not.

However, Stocks & Shares ISAs can have about 30,000 different investments in them. That is the main difference. The others being software functionality.

Plus, there's different types of interest. For example, if it's one of the old Halifax branch sold ISAs, one of their most common investment funds they used was their awful cautious managed fund. A high proportion of that is interest within it. But that is not the interest that is being looked at under the new proposals.

wmb194

https://forums.moneysavingexpert.com/discussion/6673779/interest-on-stocks-and-shares-isas

Some stockbrokers will pay interest on cash balances in S&S Isas e.g., Trading212, which currently pays 3.8% AER. Halifax Share Dealing, Scottish Widows nee iWeb and its other brands have always been stingy on paying interest though.

https://www.trading212.com/isa

masonic

https://forums.moneysavingexpert.com/discussion/comment/82046466#Comment_82046466

I don't think you are missing anything.