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Stocks n Shares ISA

TAD said:
Quick question
I'm putting £1k in my sipp and I'm getting £250 added. I thought I only got 20%, added. Should that not be £200?
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You could have typed that straight into the internet! I did it for you:

AI Overview
+11



You are absolutely correct that you get 20% basic rate tax relief, but the calculation is based on the grossamount, not your net contribution. The government adds 20% of the total, which is equivalent to adding 25% to your net contribution
 

Ned Land said:
You could have typed that straight into the internet! I did it for you:

AI Overview
+11



You are absolutely correct that you get 20% basic rate tax relief, but the calculation is based on the grossamount, not your net contribution. The government adds 20% of the total, which is equivalent to adding 25% to your net contribution
Click to expand...
Well that's just bollix. When I typed it in it said "Aye you get £250, but you must pay £50 to the Matt Hopkins benevolent fund"
 
TAD said:
Quick question
I'm putting £1k in my sipp and I'm getting £250 added. I thought I only got 20%, added. Should that not be £200?
Click to expand...
They replace the 20% you got taken off you, so its 20% relief.

So if you got paid £100, they would have taken 20% off you, so £20.
To get that back, they need to make the £80 back up to £100. That's £20 out of £80 which is 25%.
 
PTR said:
Up 5% in the last month
Up 7% in the last 3 months
Up 10% in the last 6 months
Up 26% in the last 12 months
Up 53% in the last 3 years
Up 60% in the last 5 years
Up 208% in the last 10 years
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Yeah it’s done well, thought you put this year, which would have been outstanding
 
What do people do with savings for the remainder of the year when they max out the £20k limit (soon to be £12k limit)?

This is not a 'look at me', I could only dream of maxing mine out!
 
Shambo said:
What do people do with savings for the remainder of the year when they max out the £20k limit (soon to be £12k limit)?

This is not a 'look at me', I could only dream of maxing mine out!
Click to expand...
If it was me (and it isn't either), I'd consider either Premium Bonds (which can give you a good 4% or so average return if you have a lot, eg near the £50K limit, and no tax to pay on winnings) or a SIPP. Or keep them in a good savings account as long as you don't start paying tax on the interest. Basically anything to avoid that.

By the way, the soon to start £12K limit is only for cash ISAs, not S&S ISAs which will remain at £20K (total across S&S and Cash ISAs, to be clear).
 
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The Great Soprendo said:
If it was me (and it isn't either), I'd consider either Premium Bonds (which can give you a good 4% or so average return if you have a lot, eg near the £50K limit, and no tax to pay on winnings) or a SIPP. Or keep them in a good savings account as long as you don't start paying tax on the interest. Basically anything to avoid that.

By the way, the soon to start £12K limit is only for cash ISAs, not S&S ISAs which will remain at £20K (total across S&S and Cash ISAs, to be clear).
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Premium bonds are a funny one.
The "average interest rate" idea doesn't really carry over, as its skewed by the largest prizes, that frankly you're not going to win.
Its advertised at 3.3% at the moment I think. (3.8% from July). But since that rate is applied to the whole pot, not your pot, MSE gives you the return that if you lined everyone up, what did the person in the middle get - and that's currently 2.9% if you put in the whole £50k. If you only put £1k in then its ZERO!

If you see it as a gamble where all you lose is inflation, then its fine - but it really really doesn't compare to even a basic S&S ISA. Remember, at 8% you double your money every ~10 years


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PTR said:
Premium bonds are a funny one.
The "average interest rate" idea doesn't really carry over, as its skewed by the largest prizes, that frankly you're not going to win.
Its advertised at 3.3% at the moment I think. (3.8% from July). But since that rate is applied to the whole pot, not your pot, MSE gives you the return that if you lined everyone up, what did the person in the middle get - and that's currently 2.9% if you put in the whole £50k. If you only put £1k in then its ZERO!

If you see it as a gamble where all you lose is inflation, then its fine - but it really really doesn't compare to even a basic S&S ISA. Remember, at 8% you double your money every ~10 years


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Yes, it's probably a bit worse than I suggested. I think if you have the maximum £50K pot it may be worth doing as a temporary measure (the money can be moved out pretty quickly into other investments or if you need it, with no penalties), or if you don't care too much about returns but want to have the chance of a big one. Any less than the max and the possible returns diminish quite significantly though.

I'd only really consider it personally if I had a lump sum I needed to put somewhere for a while without incurring interest and only IF I had exhausted my ISA allowance, other interest allowance, and didn't want to put money into a SIPP. I'd always choose those options first though. You really don't want to be paying tax on your savings (especially at higher rate, which will soon be 42% for savings interest, as they're adding 2% to the tax rates from Apr 2027 I think).
 
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Select coaches said:
Not sure how workable it is you can hold cash in a s&s isa. You can also just plonk it in the money markets if you’re desperate to hold cash.
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Aye, suppose. Although I’d guess in general, anyone with an investment account would be more open to investing anyway. Those that have got no interest in investing are the type who’d stick to high street banks.

Not sure if you’d be charged for using money markets on platforms too?
 
TAD said:
Quick question
I'm putting £1k in my sipp and I'm getting £250 added. I thought I only got 20%, added. Should that not be £200?
Click to expand...

Pensions are basically deferred pay. So the way to think about it is not that youre putting £200 in (from taxed money), its your putting £250 in from untaxed money, then paying £50 less tax. Because SIPPS you pay in after youve been paid so the mechanics works backwards, but from a tax accounting prospective, its £250 in pension, £200 less in your bank & taxman gets £50 less whichever way.
 
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Shambo said:
What do people do with savings for the remainder of the year when they max out the £20k limit (soon to be £12k limit)?

This is not a 'look at me', I could only dream of maxing mine out!
Click to expand...
Premium bonds are tax free. And capital gains on UK gilts (government debt) are also tax free. So if you buy short dated low coupon gilts (ie those paying 1% or less) and hold them to maturity, that's another source of tax free interest that pays a similar rate to a savings account and is just as safe.
PTR said:
Premium bonds are a funny one.
The "average interest rate" idea doesn't really carry over, as its skewed by the largest prizes, that frankly you're not going to win.
Its advertised at 3.3% at the moment I think. (3.8% from July). But since that rate is applied to the whole pot, not your pot, MSE gives you the return that if you lined everyone up, what did the person in the middle get - and that's currently 2.9% if you put in the whole £50k. If you only put £1k in then its ZERO!

If you see it as a gamble where all you lose is inflation, then its fine - but it really really doesn't compare to even a basic S&S ISA. Remember, at 8% you double your money every ~10 years


(Source
You must be logged on to see external links
)
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Having £10k in premium bonds is nuts, but if you put the full whack in having maxed out your SIPP and ISA, then they can make sense from a tax efficiency standpoint.
 
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