ISA to GIA

First Time Investing 🐣
1

Hi everyone,

I am new to Freetrade and investing in general. I thought opening an ISA would be a good idea but on further research I can see that the capital gains tax free allowance I have in the UK will more than cover any gains I can make from the £1000 I plan on investing.

I also plan on investing on ETFs soon, if that helps.

I am now faced with the dilemma of whether or not I should close my £3/month ISA by selling everything and just keeping a GIA or keep running the cost, when I know all my potential gains would most likely be within the tax free allowance.

Any advice would be much appreciated.

Thank you

2

Are you planning to invest more than £1000 in your lifetime?

3

Hi, yes I am planning to invest £2000 at the start (50-50) stocks and ETF and then a little amount every month for the ETFs every year for the next 3/4 years.

4

I did this, but then my gains got too big. I’m going to have to sell everything in my GIA’s before the end of the tax year and re-buy them in ISA’s, I should hopefully be below the capital gain allowance, which is like £12k?

1 Like
5

I generally recommend investing in GIA. If and when you have income/dividends/capital gains that exceed allowances sell down a bit and rebuy in ISA.

It also depends on investment horizon, something can boom and then one is on the hook for capital gains. Which I guess would be a nice problem to have.

6

Yes £12.5k. That’s good to know. I think for me a gain that big from the amount I put in seems unrealistic. So I don’t know if an ISA is worth it for the first year of investing.