Jump to content
House Price Crash Forum
Sign in to follow this  
Guest Riser

Holding Etf In An Isa

Recommended Posts

Guest Riser

This weeks Moneyweek has a supplement titled “Fend of the tax man with an ISA”

It provides a useful overview of ISAs and lists providers with associated charges and dealing costs.

I am looking at putting 7k into a maxi ISA and investing the lions share in commodity Exchange Traded Funds such as Gold Bullion Securities (GBS) as any gains would be free of capital gains.

Squaregain appear to offer a good deal at £12.50 per trade, others such as Halifax and Barclays also get a mention although there is no indication of the range of ETFs which may be traded through each provider.

I assume once 7k has been transferred into the ISA account ETFs may be bought and sold freely within the account without losing any tax benefits.

Does anyone here on HPC have an experience of trading ETFs through a Maxi ISA,and could recommend a provider.

TIA

Edited by Riser

Share this post


Link to post
Share on other sites

This weeks Moneyweek has a supplement titled “Fend of the tax man with an ISA”

It provides a useful overview of ISAs and lists providers with associated charges and dealing costs.

I am looking at putting 7k into a maxi ISA and investing the lions share in commodity Exchange Traded Funds such as Gold Bullion Securities (GBS) as any gains would be free of capital gains.

Squaregain appear to offer a good deal at £12.50 per trade, others such as Halifax and Barclays also get a mention although there is no indication of the range of ETFs which may be traded through each provider.

I assume once 7k has been transferred into the ISA account ETFs may be bought and sold freely within the account without losing any tax benefits.

Does anyone here on HPC have an experience of trading ETFs through a Maxi ISA,and could recommend a provider.

TIA

I've got an etrade account with multiple ETFs. This includes an ISA account and the costs are minimal. www.etrade.co.uk. They claim to be cheaper than square deal. The customer service can sometimes be a little sluggish but they are generally willing and contactable. To open the account you will need to jump through the usual bureacractic hoops (signed copy of passport etc).

Once you've put your 7k in you can by large and sell to your heart's content as far as I know and indeed I have done so.

Share this post


Link to post
Share on other sites

I've got an etrade account with multiple ETFs. This includes an ISA account and the costs are minimal. www.etrade.co.uk. They claim to be cheaper than square deal. The customer service can sometimes be a little sluggish but they are generally willing and contactable. To open the account you will need to jump through the usual bureacractic hoops (signed copy of passport etc).

Once you've put your 7k in you can by large and sell to your heart's content as far as I know and indeed I have done so.

I use square gain for my self select ISA, theres no stamp duty etc on ETFs and no dealing or comission fees so are nice and cheap! ISA fee for a year is £25 though

Regardg GBS I know you can not buy this online at SQ, I think you need to make the deal by telephone, and I am not sure they allow it in an ISA. However if ET allow it in an ISA I assume it must be marketable enough to be classed as ISAable so not sure why SQ wouldnt allow you to hold it.

As I understand you can put 7k in, but if say you sold 5k and were left with 2k, if you reinvested the 5k back into the ISA (i.e sold one share and bough another with the proceeds) that financial year then that 5k would be liable to CGT

Share this post


Link to post
Share on other sites

I use square gain for my self select ISA, theres no stamp duty etc on ETFs and no dealing or comission fees so are nice and cheap! ISA fee for a year is £25 though

Regardg GBS I know you can not buy this online at SQ, I think you need to make the deal by telephone, and I am not sure they allow it in an ISA. However if ET allow it in an ISA I assume it must be marketable enough to be classed as ISAable so not sure why SQ wouldnt allow you to hold it.

As I understand you can put 7k in, but if say you sold 5k and were left with 2k, if you reinvested the 5k back into the ISA (i.e sold one share and bough another with the proceeds) that financial year then that 5k would be liable to CGT

I thought that as long as the cash stays inside the ISA wrapper you can buy and sell without GCT. But I could be wrong.

Using etrade.co.uk you can only buy or sell stocks traded on the London stock exchange which does not include GBS. (But maybe there is a way to trade US ETFs, though then you'd also have dollar exposure.)

Share this post


Link to post
Share on other sites

Yes, the cash needs to stay inside the wrapper. If they pay it out to your bank account it's ex-ISA and you can't buy back in. Check with the provider when you make position changes to ensure that you both know what you're doing.

Share this post


Link to post
Share on other sites

As I understand you can put 7k in, but if say you sold 5k and were left with 2k, if you reinvested the 5k back into the ISA (i.e sold one share and bough another with the proceeds) that financial year then that 5k would be liable to CGT

You keep the money in an ISA, there is no tax to pay even if you cash it in. There is no limit to how big the ISA can be, although you can only add £7k a year.

Wonder if anyone has a million quid ISA yet ;)

Share this post


Link to post
Share on other sites
Guest Riser

Thanks for the replies.

I have decided to go for Squaregain as they also automatically open a dealing account along side the ISA dealing account which provides access to US and Canadian markets including warrants which have long been a favourite of Dr Bubbs.

Apparantly GBS can't be traded within an ISA wrapper although there are Gold ETFs available in the US markets which may be traded, anyone have any names. I understand that one advantage of dealing in iShare ETFs is that there is no purchase charge or stamp duty although there is a dealing charge when you sell.

There is a list of the available iShare ETFs in the Moneyweek article so I guess it will be a case of trawling through back copies to research the potential strengths and risks of each one.

EDIT: I think one was:

Streettracks Gold Tr NYSE:GLD New York Stock Exchange Fund Price = Gold/10 (approx)

State Street Global Advisors (SSgA), the investment management arm of State Street Corporation (NYSE: STT), and the largest institutional fund manager in the world,(a) today announced that assets in the streetTRACKS® Gold Trust (NYSE: GLD), the issuer of streetTRACKS® Gold Shares, have exceeded $6 billion.

Launched in November 2004, GLD is the first US commodity-based exchange-traded security and provides investors with simple, secure and cost- effective access to the gold bullion market. Designed to reduce the barriers to investing in gold, GLD holds physically allocated gold bullion with the objective of reflecting performance of the price of gold bullion less expenses.

Edited by Riser

Share this post


Link to post
Share on other sites

Apparantly GBS can't be traded within an ISA wrapper although there are Gold ETFs available in the US markets which may be traded, anyone have any names. I understand that one advantage of dealing in iShare ETFs is that there is no purchase charge or stamp duty although there is a dealing charge when you sell.

Start your research at www.ishares.net .

Share this post


Link to post
Share on other sites

Riser,

Sorry, but I've long had an ISA at Squaregain but when I sold my other stocks and went to buy GBS (which I think is the ETF you are considering) back in the Autumn I was told I couldn't buy GBS within my ISA. For various reasons relating to my tax situation I didn't mind transferring my cash out of the ISA and then buying GBS within my 'dealing' account which Squaregain automatically created for me. Its worked fine and I've done well on GBS but it isn't within an ISA wrapper which might bother you (depending on what you think your capital gains tax liabilities are likely to be) or might not.

CS

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.