Discussion
Can someone explain the benefits of these as opposed to holding shares 'normally'? I can only see that it benefits you if you expect your holdings to increase above your annual CGT limit (i.e. profits of £9200) and if your a higher-rate taxpayer. Downsides are that it costs more to keep shares within the 'ISA wrapper'. What am I missing?
Eric Mc said:
Not much.
They were mainly of benefit to higher rate taxpayers (as are all ISAs at heart).
Cash ISAs seem more attractive to me because its a useful way of maintaining cash savings, especially knowing in the future that if you just keep adding to them then there will (hopefully) be a substantial pot of cash whose interest is tax-free. But should I be thinking about equity ISAs in the same way?They were mainly of benefit to higher rate taxpayers (as are all ISAs at heart).
Whilst the CGT exemption on ISA's isn't a big deal if you only invest the max of £7,200, it becomes valuable over time if you keep making use of the ISA allowance each year.
Perhaps more importantly, the abilty to have income without any extra tax regardless of your personal tax position.
You can get a little more info from my website plus I'm sure there are plenty of other places around that can extoll the virtues of equity ISA's especially the way the markets are at the moment.
Forum rules preclude me from posting my websiite but feel free to contact me if you want more info.
Ian
Perhaps more importantly, the abilty to have income without any extra tax regardless of your personal tax position.
You can get a little more info from my website plus I'm sure there are plenty of other places around that can extoll the virtues of equity ISA's especially the way the markets are at the moment.
Forum rules preclude me from posting my websiite but feel free to contact me if you want more info.
Ian
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