Newbie buying shares: Within ISA or not?

mgh

Hello.

I have an ISA account with interactive investor into which I'm making a regular investment into two funds. I would now like to buy some individual shares too (risky I know in the current climate!) but I dont know whether to buy them as part of my ISA or as a separate iii account.

My uncertainty is if i wanted to buy more shares in the same company next year, would i have to follow the same route (ie through the iii ISA), would my investment in that company be held as at 31st March 09 or do i buy through a regular share purchase account?

Any advice gratefully received. Thankyou

jamesd

You can buy them in any way you wish, without being restricted because you happened to buy some inside an ISA initially. If you had 20 different accounts you could buy 20 different chunks.

Buying inside the ISA wrapper reduces administrative hassle because you don't need to worry about tax accounting if you make capital or dividend income.

If you buy through a regular share purchase account outside an ISA you'll need to track each purchase date to work out the capital gain when they are sold. No need to do this inside an ISA wrapper, whether it's a lump sum or regular purchase inside the ISA.

andrewj100

You can buy shares within an ISA and shares outside an ISA or mix and match. Your best off using your ISA allowance though. If you change your mind you can sell all the shares within the ISA but leave the cash wrapped in the ISA and invest in something else.
Have a look at https://www.h-l.co.uk, I've found them much better than iii, Hargreaves Lansdown are real people and exceptionaly helpfull.
You may also want to consider investing in funds rather than or alongside shares within something like their "funds and shares" ISA a fund from their wealth 150 list may ballance the risk a bit.