| Self Select ISA Charges [message #396299] |
So, 11 Juni 2006 16:20 |
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I've got a Self Select ISA worth less than £2000.
I know tax is complicated but with annual fees of £25 I am wondering
if it is actually worth it. Is the tax I'm saving merly going to the
broker.
Geoff Lane
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| Re: Self Select ISA Charges [message #396301 ] |
So, 11 Juni 2006 17:37 |
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Bitstring <th9o82lg71cks29lvujrr2hmsihptre8le [at] 4ax.com>, from the
wonderful person Geoff Lane <geoff [at] 3lanes.freeserve.co.uk> said
>I've got a Self Select ISA worth less than £2000.
>
>I know tax is complicated but with annual fees of £25 I am wondering
>if it is actually worth it. Is the tax I'm saving merly going to the
>broker.
? What tax do you think you are saving? Since there is no tax reclaim on
dividends now, unless this is a bond investment (can still get the tax
back on interest) you are saving no tax at all.
--
GSV Three Minds in a Can
Google may be your friend, but groups.google.com posters definitely aren't.
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| Re: Self Select ISA Charges [message #396304 ] |
So, 11 Juni 2006 20:44 |
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"GSV Three Minds in a Can" <GSV [at] quik.clara.co.uk> wrote in message
news:4tMO5aEKjDjEFAXX [at] from.is.invalid...
> Bitstring <th9o82lg71cks29lvujrr2hmsihptre8le [at] 4ax.com>, from the
> wonderful person Geoff Lane <geoff [at] 3lanes.freeserve.co.uk> said
> >I've got a Self Select ISA worth less than £2000.
> >
> >I know tax is complicated but with annual fees of £25 I am wondering
> >if it is actually worth it. Is the tax I'm saving merly going to the
> >broker.
>
> ? What tax do you think you are saving? Since there is no tax reclaim on
> dividends now, unless this is a bond investment (can still get the tax
> back on interest) you are saving no tax at all.
If he pays higher rate tax, he'll save tax on the dividends. Also potentially CGT.
--
Andy
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| Re: Self Select ISA Charges [message #396314 ] |
So, 11 Juni 2006 23:40 |
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Bitstring <4f36jqF1h9r3gU1 [at] individual.net>, from the wonderful person
Andy Pandy <spam8times [at] wonderful.spam.invalid> said
>
>"GSV Three Minds in a Can" <GSV [at] quik.clara.co.uk> wrote in message
>news:4tMO5aEKjDjEFAXX [at] from.is.invalid...
>> Bitstring <th9o82lg71cks29lvujrr2hmsihptre8le [at] 4ax.com>, from the
>> wonderful person Geoff Lane <geoff [at] 3lanes.freeserve.co.uk> said
>> >I've got a Self Select ISA worth less than £2000.
>> >
>> >I know tax is complicated but with annual fees of £25 I am wondering
>> >if it is actually worth it. Is the tax I'm saving merly going to the
>> >broker.
>>
>> ? What tax do you think you are saving? Since there is no tax reclaim on
>> dividends now, unless this is a bond investment (can still get the tax
>> back on interest) you are saving no tax at all.
>
>If he pays higher rate tax, he'll save tax on the dividends. Also
>potentially CGT.
Ain't gonna save any CGT on £2k though. Anyway, that's why I asked the Q
... maybe he is a HRT payer (in which case why doesn't he have about £50k
in ISAs by now?).
--
GSV Three Minds in a Can
Google may be your friend, but groups.google.com posters definitely aren't.
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| Re: Self Select ISA Charges [message #396324 ] |
Mo, 12 Juni 2006 11:25 |
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> >> Geoff Lane wrote
> >> >I've got a Self Select ISA worth less than £2000.
> >> >
> >> >I know tax is complicated but with annual fees
> >> >of £25 I am wondering f it is actually worth it.
> >> >Is the tax I'm saving merly going to the broker.
> >>
> >"GSV Three Minds in a Can" wrote
> >> ? What tax do you think you are saving? Since there is no tax
> >> reclaim on dividends now, unless this is a bond investment (can
> >> still get the tax back on interest) you are saving no tax at all.
> >
> Andy Pandy wrote
> >If he pays higher rate tax, he'll save tax
> >on the dividends. Also potentially CGT.
>
"GSV Three Minds in a Can" wrote
> Ain't gonna save any CGT on £2k though...
How do you know that he doesn't already have
capital gains elsewhere putting him over the CGT limit?
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| Re: Self Select ISA Charges [message #396333 ] |
Mo, 12 Juni 2006 13:13 |
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Bitstring <IaednUbGvpaErhDZnZ2dnUVZ8qWdnZ2d [at] bt.com>, from the wonderful
person Tim <me [at] home.uk> said
>> >> Geoff Lane wrote
>> >> >I've got a Self Select ISA worth less than £2000.
>> >> >
>> >> >I know tax is complicated but with annual fees
>> >> >of £25 I am wondering f it is actually worth it.
>> >> >Is the tax I'm saving merly going to the broker.
>> >>
>> >"GSV Three Minds in a Can" wrote
>> >> ? What tax do you think you are saving? Since there is no tax
>> >> reclaim on dividends now, unless this is a bond investment (can
>> >> still get the tax back on interest) you are saving no tax at all.
>> >
>> Andy Pandy wrote
>> >If he pays higher rate tax, he'll save tax
>> >on the dividends. Also potentially CGT.
>>
>"GSV Three Minds in a Can" wrote
>> Ain't gonna save any CGT on £2k though...
>
>How do you know that he doesn't already have
>capital gains elsewhere putting him over the CGT limit?
Again, I didn't 'KNOW' which is why I ASKED the question (which has yet
to receive a response), However I'd cheerfully beta lot of money that
someone with only 2k in an ISA is neither a HRT payer, nor has a CGT
problem to bury. If they did they'd not be asking that sort of Question.
--
GSV Three Minds in a Can
Google may be your friend, but groups.google.com posters definitely aren't.
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| Re: Self Select ISA Charges [message #396344 ] |
Mo, 12 Juni 2006 18:38 |
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On Sun, 11 Jun 2006 16:37:46 +0100, GSV Three Minds in a Can
<GSV [at] quik.clara.co.uk> wrote:
>>I've got a Self Select ISA worth less than £2000.
>>
>>I know tax is complicated but with annual fees of £25 I am wondering
>>if it is actually worth it. Is the tax I'm saving merly going to the
>>broker.
>
>? What tax do you think you are saving? Since there is no tax reclaim on
>dividends now, unless this is a bond investment (can still get the tax
>back on interest) you are saving no tax at all.
Right, I may be missing the point here but was under the impression
self select mini ISAs were free of any tax on share investments.
I'm a normal tax payer and have a few other shares valued at about 3k
elsewhere but when I bought some Sainsbury and Lloyds shares a couple
of years back got the impression they would be better in a mini ISA.
Geoff Lane
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| Re: Self Select ISA Charges [message #396346 ] |
Mo, 12 Juni 2006 20:00 |
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On Mon, 12 Jun 2006 17:38:30 +0100, Geoff Lane
<geoff [at] 3lanes.freeserve.co.uk> wrote:
>Right, I may be missing the point here but was under the impression
>self select mini ISAs were free of any tax on share investments.
The only advantage of an ISA for a basic rate tax payer is the absence
of any capital gains tax (CGT) on profits and the fact that you do not
have to mention the holdings on a tax return.
You used to be able to reclaim the tax on dividend tax credits.
Daytona
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| Re: Self Select ISA Charges [message #396347 ] |
Mo, 12 Juni 2006 20:10 |
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GSV Three Minds in a Can <GSV [at] quik.clara.co.uk> wrote:
> Bitstring <IaednUbGvpaErhDZnZ2dnUVZ8qWdnZ2d [at] bt.com>, from the wonderful
> person Tim <me [at] home.uk> said
[]
> >How do you know that he doesn't already have
> >capital gains elsewhere putting him over the CGT limit?
>
> Again, I didn't 'KNOW' which is why I ASKED the question (which has yet
> to receive a response), However I'd cheerfully beta lot of money that
> someone with only 2k in an ISA is neither a HRT payer, nor has a CGT
> problem to bury. If they did they'd not be asking that sort of Question.
Possibly true, but they ever become an HRT, or get asked to do Self
Assesment, then 25 quid p/a might be worthwhile.
Coincidently, 25 quid p/a is what Squaregain charge for *all* combined
PEPs & ISAs - OK it's not such a good deal for 2K, but if you've got
50K, then .05% could be quite handy...
rgds, Alan
--
99 Ducati 748BP, 95 Ducati 600SS, 81 Guzzi Monza, 74 MV Agusta 350
"Ride to Work, Work to Ride" SI# 7.067 DoD#1930 PGP Key 0xBDED56C5
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| Re: Self Select ISA Charges [message #396348 ] |
Mo, 12 Juni 2006 19:58 |
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Bitstring <4r5r82p7hi2o7cbq7o196tp64ati9bqk9m [at] 4ax.com>, from the
wonderful person Geoff Lane <geoff [at] 3lanes.freeserve.co.uk> said
>On Sun, 11 Jun 2006 16:37:46 +0100, GSV Three Minds in a Can
><GSV [at] quik.clara.co.uk> wrote:
>
>>>I've got a Self Select ISA worth less than £2000.
>>>
>>>I know tax is complicated but with annual fees of £25 I am wondering
>>>if it is actually worth it. Is the tax I'm saving merly going to the
>>>broker.
>>
>>? What tax do you think you are saving? Since there is no tax reclaim on
>>dividends now, unless this is a bond investment (can still get the tax
>>back on interest) you are saving no tax at all.
>
>Right, I may be missing the point here but was under the impression
>self select mini ISAs were free of any tax on share investments.
>
>I'm a normal tax payer and have a few other shares valued at about 3k
>elsewhere but when I bought some Sainsbury and Lloyds shares a couple
>of years back got the impression they would be better in a mini ISA.
No benefit at all unless you are a higher rate tax payer, or unless the
shares are really bonds (or will be in the future) delivering interest
rather than dividends, or unless you were in danger of paying CGT (now,
or later). Maybe marginally less admin for you (and no company
reports?) depending who does the ISA wrapper.
Personally I wouldn't bother, but then I wouldn't have (just) £2k in
(just) two shares anyway.
--
GSV Three Minds in a Can
Google may be your friend, but groups.google.com posters definitely aren't.
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| Re: Self Select ISA Charges [message #396349 ] |
Mo, 12 Juni 2006 21:33 |
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"Daytona" <me [at] privacy.net> wrote in message
news:qmar82lhv7u38vdpivt6tld26ma5t8ig4n [at] 4ax.com...
> On Mon, 12 Jun 2006 17:38:30 +0100, Geoff Lane
> <geoff [at] 3lanes.freeserve.co.uk> wrote:
>
> >Right, I may be missing the point here but was under the impression
> >self select mini ISAs were free of any tax on share investments.
>
> The only advantage of an ISA for a basic rate tax payer is the absence
> of any capital gains tax (CGT) on profits and the fact that you do not
> have to mention the holdings on a tax return.
>
> You used to be able to reclaim the tax on dividend tax credits.
There are a couple of other possible advantages for basic rate tax payers. Dividend
income can reduce tax credits, but not when in an ISA. Also if he's over 65 dividend
income could reduce his age related allowance, it wouldn't in an ISA.
--
Andy
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