How to hold £7,200 in a 'Cash ISA'

GTG

AlexGreen wrote: »

Nothing like getting their clients to generate commission flow for them

and I thought "churning" was exclusively commision based IFA territory.

Bazn wrote:

alternatively if u didn't want market exposure in the S&S isa, you could buy shares in Ian Rushbrooke's perma-bear Personal Assets Trust, which is currently 100% cash (as of 12th feb 2008)

Now that's another alternative worth looking into, thanks.

Cook_County wrote:

Just to be accurate on this - I have many clients who pay rates of up to 35% tax on interest in ISAs because they are US citizens (all of my clients are American) so I tend to hope they are living :rotfl:

I'd love to ask the obvious question but I suspect that may take this thread way off topic.

MrMicawber_2

This whole discussion revolves around the forthcoming DB Sterling ETF which seems to qualify for a stocks & shares ISA and therefore does not attract 20% tax. A quirk no doubt but could be useful for a lot of us.

Raywolfe - You may worry an awful lot of people with a cash ISA with your line above.

jamesd

Cook_County, foreign collective investment rules or general US investment taxation?

Cook_County

jamesd wrote: »

Cook_County, foreign collective investment rules or general US investment taxation?

If it's cash in the ISA then just regular US tax applies at up to 35% on the interest credited.

If stocks & shares then the US taxes the dividends & gains, typically at 15%.

But if collective investments the tax is a minimum of 35% with no maximum limit under the Passive Foreign Investment Company rules, so you would not normally advise a US citizen to invest in a UK collective even if he or she had lived here for years and years...

RayWolfe

MrMicawber wrote: »

Raywolfe - You may worry an awful lot of people with a cash ISA with your line above.

You're so right!
All cash held in a Stocks & Shares ISA attracts 20% tax.

Cook_County

RayWolfe wrote: »

You're so right!
All cash held in a Stocks & Shares ISA attracts 20% tax.

Dear Ray - I don't think you meant what you typed.

It is the interest that attracts 20% UK tax - not the cash itself!

RayWolfe

Oh dear. Must be having a real bad day! Concentrate, CONcentrate, CONCENtrate, CONCENTRATE!

Fortunately, as you and I know - what was it - 95% of all tax law, you have rescued me from opprobrium. I'll do the same for you at the very next opportunity.
Meanwhile, to anyone still listening:

The interest on all cash held in a Stocks & Shares ISA attracts tax at 20%.

Now, isn't that interesting? Answers on a postcard.

Paul_Herring

RayWolfe wrote: »

Meanwhile, to anyone still listening:

The interest on all cash held in a Stocks & Shares ISA attracts tax at 20%.

Now, isn't that interesting? Answers on a postcard.

As mentioned earlier, this isn't a tax, it's a 'charge.' </pedant> (despite my reference earlier referring to it as a tax.)

HTH

meester

Paul_Herring wrote: »

As mentioned earlier, this isn't a tax, it's a 'charge.' </pedant> (despite my reference earlier referring to it as a tax.)

HTH

And the reason it isn't a tax is because ISAs are not taxable :-)

GTG

If it is a charge (as HMRC call it), what do we get in return from the government for this charge? (I assume it's collected by HMRC)

We receive public services for example in return for taxes, there must be a conflict with some aspect of the law, law of contract perhaps? Food for thought.