Do i put £20,000 in Isa or move shares from Gia.
Discussion
You'll have to sell the shares first, so there's some admin and more importantly, perhaps a CG liability.
The benefit is that everything in an ISA is (I think, please check) free of tax - so you can sell £1M-sworth in future and pay no tax on the gain. Or rejig your portfolio whenever you like with no tax implications.
If you can afford to invest another £20K I'd put that in the ISA then invest it as you see fit.
The benefit is that everything in an ISA is (I think, please check) free of tax - so you can sell £1M-sworth in future and pay no tax on the gain. Or rejig your portfolio whenever you like with no tax implications.
If you can afford to invest another £20K I'd put that in the ISA then invest it as you see fit.
Simpo Two said:
You'll have to sell the shares first, so there's some admin and more importantly, perhaps a CG liability.
The benefit is that everything in an ISA is (I think, please check) free of tax - so you can sell £1M-sworth in future and pay no tax on the gain. Or rejig your portfolio whenever you like with no tax implications.
If you can afford to invest another £20K I'd put that in the ISA then invest it as you see fit.
For me its this , as the object for me is to increase my invested holdings every year , so seling down my GIA to transfer to ISA is not the point .The benefit is that everything in an ISA is (I think, please check) free of tax - so you can sell £1M-sworth in future and pay no tax on the gain. Or rejig your portfolio whenever you like with no tax implications.
If you can afford to invest another £20K I'd put that in the ISA then invest it as you see fit.
On the matter of CGT , I don't get too torqued up on the tax thing after all its potential tax on the GAIN , so you just loose a bit of gain to tax . If I were only wanting to keep current investment level I would do the GIA to ISA shuffle thing, but this is not the case
My last consideration between the GIA and ISA ( my current holdings are about same size as of today ) I am balancing my investments whereby to keep the riskier but potentially higher yields in the ISA , and the "safer" edit in the GIA end edit this way hopefully minimising overall CGT spread . I did this year sell down and reinvest in the GIA to use some of my CGT allowance this year , and also took a loss hit on another fund which is offsetting an unavoidable gain tax liability in an overseas transaction.
Edited by PM3 on Thursday 7th April 11:10
PM3 said:
Simpo Two said:
You'll have to sell the shares first, so there's some admin and more importantly, perhaps a CG liability.
The benefit is that everything in an ISA is (I think, please check) free of tax - so you can sell £1M-sworth in future and pay no tax on the gain. Or rejig your portfolio whenever you like with no tax implications.
If you can afford to invest another £20K I'd put that in the ISA then invest it as you see fit.
For me its this , as the object for me is to increase my invested holdings every year , so seling down my GIA to transfer to ISA is not the point .The benefit is that everything in an ISA is (I think, please check) free of tax - so you can sell £1M-sworth in future and pay no tax on the gain. Or rejig your portfolio whenever you like with no tax implications.
If you can afford to invest another £20K I'd put that in the ISA then invest it as you see fit.
On the matter of CGT , I don't get too torqued up on the tax thing after all its potential tax on the GAIN , so you just loose a bit of gain to tax . If I were only wanting to keep current investment level I would do the GIA to ISA shuffle thing, but this is not the case
My last consideration between the GIA and ISA ( my current holdings are about same size as of today ) I am balancing my investments whereby to keep the riskier but potentially higher yields in the ISA , and the "safer" this way hopefully minimising overall CGT spread . I did this year sell down and reinvest in the GIA to use some of my CGT allowance this year , and also took a loss hit on another fund which is offsetting an unavoidable gain tax liability in an overseas transaction.
mikeiow said:
& you are allowed a gain of 12,300 for last year....if your 20k investment made that much profit, fair play
no no !! The big gain comes from an investment elsewhere that was accumulating untouched for about 12 years and 2had to be " actioned thus creating the liability . If I were turning 20K into a 12,300 threshold busting gain in a year, I would be dreaming PM3 said:
mikeiow said:
& you are allowed a gain of 12,300 for last year....if your 20k investment made that much profit, fair play
no no !! The big gain comes from an investment elsewhere that was accumulating untouched for about 12 years and 2had to be " actioned thus creating the liability . If I were turning 20K into a 12,300 threshold busting gain in a year, I would be dreaming 
PM3 said:
On the matter of CGT , I don't get too torqued up on the tax thing after all its potential tax on the GAIN , so you just loose a bit of gain to tax . If I were only wanting to keep current investment level I would do the GIA to ISA shuffle thing, but this is not the case
I've an acquaintance who didn't pay attention to a 27 bagger in their GIA, and is now looking at a significant CGT problem. I keep a couple of different investments in the GIA and alternately sell some of one or the other at the end of each tax year, and that money immediately goes into the ISA and goes (as with you) into different assets.The GIA holdings get further investments through the year, but I see no reason not to defuse some of my accumulating CGT liability this way each year - the allowance is there, it seems rude not to use it.
Something worth bearing in mind is that if you bed and ISA (sell position in dealing account and buy it in ISA, i.e. what you're describing) this early in the tax year to use some or all of your CGT allowance, you could leave yourself open to a takeover or other corporate action later in the year forcing you to take a gain that takes you over the allowance. Obviously it depends what your holdings are as to how possible or likely this is, but it's why my preference would be to fund the ISA with cash at hand now, then look to optimise CGT position later in the year once any unexpected gains and losses are known.
Optimum sequence of events for me is sell in GIA a few days before the end of the tax year, so come settlement I can easily move it to the ISA come the new ISA allowance. GIA and ISA are with separate firms for a degree of risk reduction.
I've previously come >< close to encountering the problem you describe.
I've previously come >< close to encountering the problem you describe.
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