Isa help

[Mayor West]

Seeing as it's the new tax year, if I open a new isa with a lump sum of 20k, does that effectively wipe out my allowance for the year? Or can I still add up to 20k after that?

This is assuming I close other isa's and put it all in one.

 

[BlueMoonie]

Seeing as it's the new tax year, if I open a new isa with a lump sum of 20k, does that effectively wipe out my allowance for the year? Or can I still add up to 20k after that?

This is assuming I close other isa's and put it all in one.

Ok when you say close i hope you mean transfer. If you close your isa and dont do an isa transfer this money If you then move it to a new isa will use your current years allowance so just to be clear any invested funds from previous tax years if you want to move them to a new isa when you open it you need to do an isa transfer to move the money without it using this years allowance. As for moving money into the isa for this year once it has been opened if you move 20k that's you at your limit until the next tax year

 

[DenisLawBackHeel74]

Seeing as it's the new tax year, if I open a new isa with a lump sum of 20k, does that effectively wipe out my allowance for the year? Or can I still add up to 20k after that?

This is assuming I close other isa's and put it all in one.

Yes it does.

But you could have your partner also open one up and lump another 20k in that.

The second question about closing the isa would actually mean transferring that isa either into the new isa wrapper (and adding you new allowance of 20k) or leaving where it is.

 

[leeneel]

Bump.

looking at starting a stocks and shares ISA to help towards retirement and would be looking to put at least £50 a month into it for the next 15/20 years.

Any advice on which product is best? I know zilch about markets so probably a fully managed one?

Cheers in advance.

 

[denislawsbackheel]

Bump.

looking at starting a stocks and shares ISA to help towards retirement and would be looking to put at least £50 a month into it for the next 15/20 years.

Any advice on which product is best? I know zilch about markets so probably a fully managed one?

Cheers in advance.

If you are under 40 this is a good one. You can pay in until you are 50. UK govt gives you a big bonus. Check the terms and conditions though.

Lifetime ISA

Tax free saving for your first home and later life: what is a LISA, who can apply, 25% government bonus, withdrawal charges.

www.gov.uk

why an ISA?
Why not a low cost pension fund?
The govt give you your tax back for those, any isa other than the above one is funded by tax paid income.

 

[leeneel]

If you are under 40 this is a good one. You can pay in until you are 50. UK govt gives you a big bonus. Check the terms and conditions though.

Lifetime ISA

Tax free saving for your first home and later life: what is a LISA, who can apply, 25% government bonus, withdrawal charges.

www.gov.uk

why an ISA?
Why not a low cost pension fund?

Sadly im older than that, 50.

I see it as just another vessel to try and save some cash with a nice lump sum at the end and with probably another 15/20 years work left in me.

Bad idea?

 

[denislawsbackheel]

No, but a stocks and shares low cost low risk pension fund will out do a similar ISA simply because if you are a standard rare tax payer every £80 you put in an ISA is £80 to grow, every £80 you put in a pension is £100 to grow because UK govt gives the pension fund the tax back you paid on that money.

 

[leeneel]

Thanks for the time and advice @denislawsbackheel, appreciated.

Will take a look at all options.

 

[denislawsbackheel]

Thanks for the time and advice @denislawsbackheel, appreciated.

Will take a look at all options.

This might clarify it for you.

Which is better, a pension or an ISA?

www.ii.co.uk