Invest vs ISA help?

đź“Š Investing
1

Hi fellow investors,

I’ve been investing £400 monthly into 4 pies (£100 per pie) into the invest side. Currently invested just over £6.2k. I want to continue this on the ISA side I know I cannot move my current positions into ISA until I sell my positions and buy them back on ISA until maybe there would be a feature where T212 will allow this movement.

Anyways my question is shall I continue with my investment as I am doing right now or copy the same pies into ISA and start investing there?

Thanks

2

Hi, personally I would fill up your ISA first. It’s the only tax free wrapper you have, and longer term if you come to sell positions with a net overall gain of about 12k a year, you will be liable for tax if not in an ISA wrapper.

You also only get a 20k ISA allowance per year, so if you don’t use it, you lose it.

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3

@Dougal1984 seconded

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4

What about my current positions?

Shall I just leave them as it is and start ISA from zero?
(Make a copy of my pies from the invest side and just invest in them in the ISA side)

5

I would leave them as I think the CGT allowance is around 12.8k, but if you haven’t filled up your ISA by the end of March, transfer them then.

6

Ok, as far as I know T212 don’t allow to transfer from invest to ISA. Would I have to sell (on invest side) then buy back (on ISA side). Or is there a way I don’t know?

7

I don’t think anyone allows transfer from a general invest account in to an ISA. You’d have to complete any taxable events first.

You’re perfectly allowed to sell in invest and immediately re-purchase in your ISA. As long as you’re not profiting more than the capital gains tax allowance you won’t have any tax to pay.

8

22-23 cgt is ÂŁ12,300 same as last year

9

With long term investing compounding is important. Now with my current position in invest side how would this work out?

10

It won’t make a difference mathematically.

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11

If I sell all my shares/positions I have on invest and then move all the money into the ISA side then use the funds I have back into my pies, I won’t lose out in the long term?

12

Long term your assets will be in a wrapper that is free from capital gains.

In the transfer process, you might lose out a small amount in 212 FX fees, market fees, spread or if the market doesn’t move in your favour between the time you sell, transfer and then buy in your ISA. Similarly if the market is dropping you might end up buying back more shares in the same stocks.