Stock and Shares ISAs

[Darlo1973]

Been in one over 18 month and only had a loss and it’s stagnant as whatever money is being made is paying the management fee. Considering putting a chunk of it into a 5.5 fixed rate isa for 2 year. I’m not convinced sticking it out.

18 months is no time at all. You need to be thinking 10-20 years or longer. As the financial adage goes "time in the market is more important than timing the market", You will have good years and bad years but the trend will be upwards (at least it always has been so far)

However, I'm a big believer in not having all of your financial eggs in one basket. Having a chunk in easy(ish) access cash savings is wise just in case you need to get at your money at a time the market is low. It is often recommended to have 3 months essential living expenses as an emergency fund.

 

[squashjoe]

Been in one over 18 month and only had a loss and it’s stagnant as whatever money is being made is paying the management fee. Considering putting a chunk of it into a 5.5 fixed rate isa for 2 year. I’m not convinced sticking it out.

16 years in and it's been a monthly drip feed and I'm in for the long haul very happy with mine. You may need to shop around and transfer your ISA to someone say like vanguard where the management fee is minimal. Hope it works out.

 

[safcforever]

Watch out for CN shares the next few days.
Also CPKC but I think that will be closed sooner than CN

 

[fook]

Been in one over 18 month and only had a loss and it’s stagnant as whatever money is being made is paying the management fee. Considering putting a chunk of it into a 5.5 fixed rate isa for 2 year. I’m not convinced sticking it out.

My current one started around Feb 2023, its roughly 20% up in that time, Nutmeg.

 

[Darlo1973]

My current one started around Feb 2023, its roughly 20% up in that time, Nutmeg.

Depends where it invested. The US market has been up over 20% in the last year. The UK market less so.

Personally I'd go with as much exposure to the US markets as you feel comfortable with. The US has many more companies capable of growing quicker. The UK, on the other hand, is usually better for dividends as the FTSE is dominated by long established businesses which are good at generating cash but don't grow as quick.

 

[arthursboy]

Any advice or point me to someone who can advise please?
Wife has shares in a company scheme, which matures in November (5 year scheme )
It’s made a great return as the share price was low due to COVID.
Does she pay tax on any profit she has made or can she push it to a savings scheme thus avoiding tax until a later date.
Her mate rekons she can push it into an ISA however I assumed it can’t as the tax hasn’t been paid on profits.
I understand that the first £3k is tax free.
Appreciate any help or best people to get advice from

 

[42]

Any advice or point me to someone who can advise please?
Wife has shares in a company scheme, which matures in November (5 year scheme )
It’s made a great return as the share price was low due to COVID.
Does she pay tax on any profit she has made or can she push it to a savings scheme thus avoiding tax until a later date.
Her mate rekons she can push it into an ISA however I assumed it can’t as the tax hasn’t been paid on profits.
I understand that the first £3k is tax free.
Appreciate any help or best people to get advice from

I not sure you can just move to isa if they weren't initially in an isa. You'd have to sell (pay whatever capital gains tax is due) then rebuy in isa wrapper

 

[Darlo1973]

Any advice or point me to someone who can advise please?
Wife has shares in a company scheme, which matures in November (5 year scheme )
It’s made a great return as the share price was low due to COVID.
Does she pay tax on any profit she has made or can she push it to a savings scheme thus avoiding tax until a later date.
Her mate rekons she can push it into an ISA however I assumed it can’t as the tax hasn’t been paid on profits.
I understand that the first £3k is tax free.
Appreciate any help or best people to get advice from

It will entirely depend on the rules of the company share scheme. There are ways of setting them up which are more tax efficient than others.

Some info here:

You must be logged on to see external links

 

[Agent Zigzag]

Any advice or point me to someone who can advise please?
Wife has shares in a company scheme, which matures in November (5 year scheme )
It’s made a great return as the share price was low due to COVID.
Does she pay tax on any profit she has made or can she push it to a savings scheme thus avoiding tax until a later date.
Her mate rekons she can push it into an ISA however I assumed it can’t as the tax hasn’t been paid on profits.
I understand that the first £3k is tax free.
Appreciate any help or best people to get advice from

Does she purchase the shares at a specified price or is she gifted them? I had some gifted and immediately sold them - this was subject to PAYE tax. I hadn't expected this and thought I'd pay Capital Gains Tax. Ended up with a nice sum but was expecting a lot more!!

 

[a1970man]

Any advice or point me to someone who can advise please?
Wife has shares in a company scheme, which matures in November (5 year scheme )
It’s made a great return as the share price was low due to COVID.
Does she pay tax on any profit she has made or can she push it to a savings scheme thus avoiding tax until a later date.
Her mate rekons she can push it into an ISA however I assumed it can’t as the tax hasn’t been paid on profits.
I understand that the first £3k is tax free.
Appreciate any help or best people to get advice from

You can push up to £20k of actual shares into an ISA as an "in specie" transfer.
Not all stock and share ISA's allow this, but Halifax and AJ.Bell do I think.
Then you're shares sit in this shell until you sell them and it's all tax free.
Don't forget you and you wife have allowances and she could transfer shares to you under a spousal transfer and you could bank them under your allowance as well, so essentially £40k tax free per year.

Normally you pay tax on any profit over £3k a year, but that's £3k PROFIT, not £3k amount
So
Buy shares for £2k
Sell shares for £5k and you're fine
Sell for any more than £5k and you pay tax on the amount above a £3k profit (dependent on you're tax bracket etc)

 

[Darlo1973]

Does she purchase the shares at a specified price or is she gifted them? I had some gifted and immediately sold them - this was subject to PAYE tax. I hadn't expected this and thought I'd pay Capital Gains Tax. Ended up with a nice sum but was expecting a lot more!!

If PAYE tax wasn't payable in that case then employers and workers could dodge tax by agreeing for wages to be paid in shares rather than cash.

The biggest tax bill I've ever had was from some free shares I had in a previous employer which I sold as part of the business being acquired. It was all free money but the tax bill was eye-watering.

 

[arthursboy]

Thanks everyone really appreciate that and as I expected I thought much the same paying tax on any profit minus £3k

The scheme doesn’t gift the shares they are bought at an agreed price 5 years ago.
Basically we pay a monthly amount and at the end of the 5 year term which is now that money buys the shares.

Will look into the Halifax option as it’s summit I wasnt aware of.
The thought was even deferred them and cash them in when her salary is less essentially part of a pension fund.

Many many thanks

You can push up to £20k of actual shares into an ISA as an "in specie" transfer.
Not all stock and share ISA's allow this, but Halifax and AJ.Bell do I think.
Then you're shares sit in this shell until you sell them and it's all tax free.
Don't forget you and you wife have allowances and she could transfer shares to you under a spousal transfer and you could bank them under your allowance as well, so essentially £40k tax free per year.

Normally you pay tax on any profit over £3k a year, but that's £3k PROFIT, not £3k amount
So
Buy shares for £2k
Sell shares for £5k and you're fine
Sell for any more than £5k and you pay tax on the amount above a £3k profit (dependent on you're tax bracket etc)

So it is possible to transfer the actual shares to an ISA ?
I had thought that only cash could be transferred into an ISA then that company converted my cash into shares ?
Sorry to be thick

 

[a1970man]

Thanks everyone really appreciate that and as I expected I thought much the same paying tax on any profit minus £3k

The scheme doesn’t gift the shares they are bought at an agreed price 5 years ago.
Basically we pay a monthly amount and at the end of the 5 year term which is now that money buys the shares.

Will look into the Halifax option as it’s summit I wasnt aware of.
The thought was even deferred them and cash them in when her salary is less essentially part of a pension fund.

Many many thanks


So it is possible to transfer the actual shares to an ISA ?
I had thought that only cash could be transferred into an ISA then that company converted my cash into shares ?
Sorry to be thick

No, you can transfer shares into an ISA, but only certain companies allow this, as I said Halifax and AJ Bell are 2 that allow it, they're called "in specie" transfers. It's a bit more complicated than simply moving money, couple of forms to fill in etc, but if it means that you're saving hundreds in tax, then well worth the effort.

 

[Select coaches]

Anyone lucky enough to have bought into Defence lately

 

[SurreyMackem]

I have an investment ISA with Barclays and they have advised me that they are removing the fee and it will now be free to invest with them. That's great but how are they making money to pay for providing this service?

 

[cosmicchris00]

I have an investment ISA with Barclays and they have advised me that they are removing the fee and it will now be free to invest with them. That's great but how are they making money to pay for providing this service?

You'll need to look at any other charges.

Barclays fee will be one component, the brokers or fund providers will have their charges (both initial fee and ongoing).

Barclays may have entered into some agreement to take a skim off the fund providers or brokers..?