ISA mini stocks and shares wrappers - are they worth it for basic rate tax payers?

I am thinking of buying 6.5K's worth of Rathbone Income Fund, however I have already used up this years ISA allowance (cash and mini stocks and shares). Or will have by the end of the financial year (pound cost averaging).

Is it worth waiting until the next tax year and buying this amount in a maxi ISA for a basic rate tax payer like me?

How much per annum would 6.5Ks worth of RIF currently bring in per annum?

I am not too sure about the benefits of the ISA allowance when it comes to stocks and shares for basic rate tax payers.

Reply to
John
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So you may as well go in now.

Reply to
cedric

The only benefit would be in CGT when you come to sell it. The fund would need to more than double before it isn't covered by your annual exemption and you can deal with this by selling parts of it over several years, or by selling and moving into another, possibly similar fund.

Reply to
Jonathan Bryce

In message , John writes

The benefit is twofold :

CGT avoidance (when added to other things) but you cant use any losses and

Later, if you wish to transfer to Fixed Interest (say when in retirement) the interest is still tax free.

BUT dont let thois stop you making an investment. If you want to invest, then invest, looking at any available tax wrappers comes next .

Reply to
john boyle

Surely there is a benefit if you're actually drawing income from the fund as you won't have to pay any income tax on it, assuming that you have enough income to have already used up your allowance?

Reply to
yoosnet

In message , snipped-for-privacy@gmail.com writes

But iof the 'income' you take is the dividends received by the fund then they still have tax deducted before the fund gets them and it cant be claimed back anymore by the ISA provider. 'Interest' though, including that form fixed interest stocks, are paid Gross.

Reply to
john boyle

Tax credits won't be affected by ISA income.

Age related tax allowances won't be affected by ISA income (for over 65's).

Reply to
Andy Pandy

In message , Jonathan Bryce writes

Just make sure you dont sell your 'buy to let' in the same year!

Reply to
john boyle

In message , Andy Pandy writes

Fair comment.

Reply to
john boyle

Fivefold if you become a higher rate tax payer in future.

Thom

Reply to
Thom

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