Hi guys what’s the worth of the invest feature before you have to pay tax?
Good question. Here are some reasons. ISA is only available to UK taxpayers. Some investments cannot be held in an ISA. Cannot hold non sterling currency in an ISA. Investments in Invest accounts can be be more easily transferred between spouses or given as donations to charities.
As you imply, Invest account mainly comes into play once you pay tax. Some UK taxpayers may find they have more to invest than the annual ISA allowance can absorb. When you have investment losses there is tax relief on those losses in an Invest account, so in a sense investment in a taxable account is less risky as taxman shares your gain and pain. Thus some people prefer to use ISA for long term savings and Invest for more speculative investments.
And the amount before you get taxed in the isa invest is 20,000 per tax year?
UK taxpayer ia only taxed on divdends above 2,000 and capital gains above 11,300.