Doubt about the ISA account

Thank you

Really? Does it include salaries?

No salary isn’t a Capital Gain. it includes profits from other things you might have sold for a gain though. For example a property that isn’t your main home

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Thank you Dave :+1::+1:

You only pay tax if you withdraw your gains and dividends out as income.

You won’t have to pay taxes on your first £2k of dividends.

Here is a tax cal you can use Dividend tax calculator – TaxScouts

I’m a non-taxpayer unlikely to come close to triggering any annual tax threshold (divis, cgt, IT etc).

In a blue sky/Tesla world I’ve used ISA in case cumulatively a withdrawal in the medium to long term future from a taxable account was a taxable event (and simplify potential annual tax reporting for non-taxpayers :wink: - DYOR).

As a non-earner I minimise costs by using Trading212 ISA (free ISA, instant deposits, broad universe, long term profitable, platform diversity, FSCS cover for platform failure).

I use FT taxable account for stocks not available on T212; for instance I have just swapped a couple of grand over to FT for some EXCELLENT new tech etfs (market top, not investment advice! :grinning: ).

I love the ethos and community on FT and would happily swap more over as they beat the competition (Revolut, Stake, eToro, Robinhood (UK RIP) et al).

My Sipp is with Vanguard which is strictly vanilla buy/hold beta, up for grabs to a cheaper provider providing sufficient fscs diversification :point_up: .

Is that true?

Yes, just google t212 and fscs and you should get to the relevant page.

I was looking at transferring my GIA to an ISA.
Something I didn’t realise and I reckon there are others in this position.

For arguments sake, say I built my GIA up to 10k in US stocks. I didn’t think I would reach the capital gains threshold so that’s why I went for a GIA (I am still nowhere near that threshold) and I could save the £3 per month.

What I didn’t take into account here was the exchange fee FT charges when you have to sell everything to then put it into an ISA.

So with £10k Worth of US stocks that would be a £45 charge to sell, + £45 to re buy within the ISA. So £90.

That’s not far off 3 years worth of ISA fees.

Really don’t think this is clear to most people or beginners like myself.

Edit: the option to be able to hold cash in dollars would be incredibly useful!

Have I missed something?

Your future self might thank you for moving the investments into a tax free wrapper.

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Yea I came to the conclusion I’d be better off just opening an ISA early on. The £3 a month feels simpler than possible exchange costs and spread loss involved with selling transferring and rebuying

I don’t think you can keep dollars in an ISA though so no way round the exchange rate cost

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Only sterling is allowed as cash within an ISA.

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I assume this means that the government regulations only allow for sterling as cash within an ISA?!

Correct, although it does feel a bit arbitrary as you can hold products that track the USD very closely if you want e.g. US treasuries or even USD cash ETFs (although I don’t think any are available on Freetrade)