Invest account vs ISA

🤝 Help
1

Hi guys,

I’m new to 212 and investing in general.

Wondering if somebody could point out the differences/benefits in depositing into an ISA over an Invest account and vice versa

Many thanks,

2

Invest - You have to report your taxable earnings.

ISA - UK only type of account which is exempt from tax.

3

For long term investing definitely use the ISA, so long as you don’t have another stocks and shares ISA, or you’ve already used your £20,000 total ISA limit. If you want to trade, it’s up to you which you want to do, because the taxable “invest” account will tax your profits however you can declare your losses if that happens. You also have a tax free level of capital gains of around £8000 I think, and £2000 for dividends. So if you won’t exceed that it doesn’t really matter, and invest could be better if you make a loss as you can reduce your taxes

4

Thanks for the feedback guys. Very helpful :+1:

5

It is £12,300 tax free capital gains for UK taxpayers.

6

Thanks Richard, couldn’t remember the exact number lol