When investing in higher risk funds/shares, would you put those inside or outside an ISA? As you can offset the potential losses against the gains for CGT reasons, which you cannot within an isa, this looks like a good idea.
My current strategy is:
mini-cash isa: safe bet for the deposit
mini stock isa: 'low risk/cost' trackers
outside isa: riskier funds/shares
Full Version: Isa Or Not
QUOTE(FreekBear @ Mar 2 2005, 02:26 PM)
When investing in higher risk funds/shares, would you put those inside or outside an ISA? As you can offset the potential losses against the gains for CGT reasons, which you cannot within an isa, this looks like a good idea.
My current strategy is:
mini-cash isa: safe bet for the deposit
mini stock isa: 'low risk/cost' trackers
outside isa: riskier funds/shares
My current strategy is:
mini-cash isa: safe bet for the deposit
mini stock isa: 'low risk/cost' trackers
outside isa: riskier funds/shares
As I've said many times b4 - do not allow the tax tail to wag the investment dog. Above all
do not invest unless you are confident of gains!
QUOTE(Financial Planner @ Mar 2 2005, 05:13 PM)
As I've said many times b4 - do not allow the tax tail to wag the investment dog. Above all do not invest unless you are confident of gains!
do not invest unless you are confident of gains!re Invest: but being confident and being right are very different. It's nice if your can structure it so you don't pay more CGT than you have to.
Re tax tail: 40% is a lot of tax to pay, and it sure does influence how I invest. It's a tail that bites the dog.
Ie. 5.4% on a mini cash isa is equates to about 9% pre tax. I have to do better than that on the stockmarket, which involves costs and is not safe.
Okay, cash isa isn't quite 'investing'.
QUOTE(FreekBear @ Mar 2 2005, 05:10 PM)
re Invest: but being confident and being right are very different. It's nice if your can structure it so you don't pay more CGT than you have to.
Re tax tail: 40% is a lot of tax to pay, and it sure does influence how I invest. It's a tail that bites the dog.
Ie. 5.4% on a mini cash isa is equates to about 9% pre tax. I have to do better than that on the stockmarket, which involves costs and is not safe.
Re tax tail: 40% is a lot of tax to pay, and it sure does influence how I invest. It's a tail that bites the dog.
Ie. 5.4% on a mini cash isa is equates to about 9% pre tax. I have to do better than that on the stockmarket, which involves costs and is not safe.
40% after personal allowance of £8,200 gains in a year. Also, with spouse, gains of £16,400 can be made ina year without tax.
9% is huge with 3.2% RPI.
Investing, unless one is knowledgeable, is normally in the long term. Too many people think they can beat the system. Some can - most can't.
Good luck.
QUOTE(Financial Planner @ Mar 3 2005, 09:46 AM)
40% after personal allowance of £8,200 gains in a year. Also, with spouse, gains of £16,400 can be made ina year without tax.
9% is huge with 3.2% RPI.
Investing, unless one is knowledgeable, is normally in the long term. Too many people think they can beat the system. Some can - most can't.
Good luck.
9% is huge with 3.2% RPI.
Investing, unless one is knowledgeable, is normally in the long term. Too many people think they can beat the system. Some can - most can't.
Good luck.
Does the £8200 allowance cover bank interests too? If so, then the 7% or 8% drip feed saving accounts are pretty nice.
QUOTE(FreekBear @ Mar 4 2005, 07:10 PM)
Does the £8200 allowance cover bank interests too? If so, then the 7% or 8% drip feed saving accounts are pretty nice.
Interest is income taxable - not capital gains tax
QUOTE(Financial Planner @ Mar 7 2005, 09:51 AM)
Interest is income taxable - not capital gains tax
Okay, I see. Dividends fall under income tax too then?
QUOTE(FreekBear @ Mar 8 2005, 09:52 AM)
Okay, I see. Dividends fall under income tax too then?
Oui.
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