I’m curious about Trade 212 ISA, I’ve never had a ISA before. Interested In the stocks and shares aspect but I do understand that it’s tax free investment. How flexible is the ISA in terms of buying shares, can it be individually or is it fixed amount each week or month? Do you have the same number company’s (US & UK) to invest In and how many ETF (Vanguard) are there (Roughly)???
The number of companies and funds in the ISA account continues to increase over time as new additions are made to the platform, as long as the listing is eligible to be held in an ISA there will be a time when it will become available for addition to your portfolio.
You can deposit a maximum of £20,000 every tax year, this doesn’t count any withdrawals, only deposits so if you deposit and withdraw £2000 ten times you will have to wait until April to add more funds.
None of the profits you make in the ISA will face any form of taxation, even when you withdraw it there will be no taxes applied on that money to do so. Trading212 does not charge fee’s to use either the Invest or ISA account and there are no alterations to the listings spread or currency conversion (FX) fees.
You are free to invest as often or as little as you want as long as you still have allowance remaining. You can automate deposits to the following schedule and with the addition of the new Pie feature, you can also automate the purchase of shares daily, weekly, biweekly, monthly should you choose to do so.
You can only open 1 ISA of a particular type every tax year, so if you open a stocks and shares ISA with T212 you wont be able to do so elsewhere until the next tax year begins. You can also only fund a single S&S ISA in a given tax year so if you choose to open a S&S ISA with another provider next year then you will have to stop depositing to the T212 ISA, any deposits made to T212 that year would also have to be transferred in full to the new ISA supplier as well. you can however continue to buy and sell using the funds already in the ISA I believe.
The £20,000 limit applies to all ISA’s of which you can have 4 different types funded each tax year so it will be important to ensure the limit is not exceeded.
You are free to either plan to buy and hold shares long term, or to day trade by buying and selling shares frequently, there are no restrictions to what you do with your money. It is recommended to fund the account with a bank card or via bank transfer as funds will be released back to their source in case of a withdrawal due to Anti-Money Laundering Regulations.
Thanks for the in depth information, just the answers i was searching for. I had to read it twice just to let it sink in. Well think I best set my ISA up sooner rather than later. As April is not that far away. Thanks for taking the time to reply Dao.
I have a question related to gains and taxes. For instance if you make more than 2k in dividends do you pay tax on that or not? Are you ever even required to file a tax assessment on what you hold in ISA regardless of gains and dividends?
The ISA is protected so you don’t have to report anything. whether that is CGT gains/losses, dividends or withdrawals.
Only if the dividends outside of your ISA total more than £2,000 from all sources/platforms would you have to tally it all up and declare it as you would with CGT if you made enough transactions to exceed the £12,300 when it comes time to pay your taxes.
@Dao Is there a max withdrawal limit per year?
Case 1: Deposit 20k in ISA stock. Gain of 40k equal 60k in total ISA value. Can the whole 60k be withdrawn with no tax implications or max of 20k per year?
100% of profits(income and capital) made in the ISA are tax free.
Sweet! ISA is the way forward, then.