Itās really cool, you get a direct message telling you the dividen you got and the cash just appears in your Acc when itās awarded as cash obviously. I got my first one recently and it was awesome 
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Jesus that is a scary amount of assets to momentarily be floating in the wind. Crazy.
Evening all! Stocks & Shares ISA question here.
I note the following from a Freetrade blog post:
- You can only contribute to one of each type of ISA each tax year.
- Based on the current rules, you can keep as many ISAs as you want open.
My question is on the specific definition of ācontributeā in this. Does this only refer to depositing cash into the Freetrade ISA account? Or does it also include any one of: buying shares, selling shares, receiving dividends, buying shares with received dividends or withdrawing cash from a Freetrade ISA?
I am intending on depositing a lump sum of cash into the account before the 5th April with which I will buy/sell shares in the next financial year. I do however want to keep my options open for the next financial year and donāt want to prevent myself from opening a new Stocks & Shares ISA with a different provider in the coming financial year.
Thanks in advance,
John
Salutations @john.com
Unless I misunderstood, which wouldnāt be the first time btw, a contribution refers only to depositing/ transfering money into the S&S ISA.
Once inside, according to current rules, you can buy individual stocks, ETFs or Trusts. The proceeds derived from either received dividends or through capital gains on the sales donāt count as contribution to the S&S ISA. And they are tax exempt forever. Or at least till some government decides to change the rules.
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Raul, thanks for your reply.
That is what I thought (and hoped) and it is nice to hear it from another source. I guess the key point is that the whole Freetrade ISA account counts as the ISA, cash and all.
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Yes, perfectly acceptable.
Forgive me if this question has already been asked .
I know when purchasing US stocks thereās a 15% tax, Regardless of being in an ISA or not .
But being in a ISA and purchasing ETFās , do you still get that US tax ?
Iāve noticed some ETFās have some US stocks in them and some entirely US .
Also are all ISA dividends tax free if they have US links , I presume you still acquire dividends from ETFās like you do from individual stocks .
Thanks
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Can Anyone answer this question please 
As far as I know thereās no tax on US stocks. Certainly didnāt appear on the CREST note
The ISA makes no difference to the tax on dividends as itās a US charge
You get dividends from ETFs but you canāt buy ETFs domiciled in the US. EU domiciled ones will have that tax taken off before they send the dividend so you wonāt see it
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So in an ISA purchasing US stocks or US related ETFās like the s&p500 etf , you get tax on dividends and any gains ,
But if purchasing any UK stocks in a ISA you donāt get tax on divs and gains .
The S&P 500 in app is domiciled in Ireland so the dividend paid doesnāt have withholding tax. Presumably they pay the withholding tax on the dividends they get from the constituent shares they hold in the companies but itās not something we see.
Hereās a screenshot of a dividend payment I got this week
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You wonāt be taxed on gains ever if bought within an ISA, even if you buy US stocks.
You also will not pay dividend tax in a way UK residents do - 7.5%/32.5%/38.1% depending on your income levels.
However, before you get your dividends credited to your account, the US will take 15% off regardless of your income level or the amount you will be paid. This is an unavoidable charge which neither Freetrade nor the UK authorities have any power against. On the bright side, Freetrade has facilitated a reduction from 30% to 15% for its users (everyone pays 30% by default) and you also do not need to be concerned about it when it comes to self-assessment, it is simply subtracted before your dividend cash leaves the US.
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Brilliant , thatās cleared that up
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Iāve got access to the Android app, and have just made my first deposit! However, Iām debating whether I should hold of for the ISA to launch? I want to avoid having to do a self assessment tax return for my investments, but Iām wondering if thereās an easy way of using the General Investment Account? Iāve looked into the governmentās 'real timeā Capital Gains Tax service, but does anyone know how easy it is to use? Is a lot of paperwork involved?
I know we get a dividend allowance of 2k, and CGT of 11k so I could easily keep my investments under these limits until ISAs launch on Android? Or maybe I should just wait until the summer before making any trades?
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I think you only need to do self assessment if you exceed the capital gains quota, so donāt worry about it for now. You can always sell your investments and rebuy in an ISA when it makes sense for you to do so.
From Gov.uk:
You do not have to pay tax if your total taxable gains are under your Capital Gains Tax allowance. You still need to report your gains in your tax return if both of the following apply: the total amount you sold the assets for was more than 4 times your allowance. youāre registered for Self Assessment .
N.B:
I wonder if itād be a cool feature if Freetrade could automatically sell our investments when they hit 3.9x in a GIA 
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Oh, so provided I donāt make a gain of >10k and donāt receive dividends of above 2k, I donāt need to declare or do anything with HMRC?
That sounds suspiciously easy for something tax related! 
Thatās what I can make out from their rules, but Iād have a good read of their website first to be sure, donāt just take my word for it! 
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This is my understanding. Also not a tax expert though.
Even if you could manage the virtually impossible feat of gaining more than Ā£11.7k between now and when the ISA is available, it would be better to buy those stocks now while theyāre cheap and make all those gains (and pay tax on some of those gains), than wait and buy far fewer much higher priced shares in the ISA in the future.
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I know you mean well. But please donāt forget prices can go up, down or stay the same, between now and then, and after that
Of course. But we were discussing cgt implications, which are only a concern if a gain occurred. If you make a loss or stay the same, it doesnāt matter if you did it in your GIA or you borrowed someoneās iPhone to do it in an ISA.