Why You SHOULDN'T Use A Stocks & Shares ISA
101.5 هزار بار بازدید -
3 سال پیش
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IMPORTANT UPDATEThe UK Government has
IMPORTANT UPDATE
The UK Government has slashed the 0% Capital Gains amount from £12,300 to £6,000 in 2023/2024 tax year and down to £3,000 the following year. This significantly affects the points discussed in this video, but for very low amounts invested initially, where even £3,000 is an exceptionally high gain relative to money put in, the video still explains a useful point.
In this video I will explain why you shouldn't use a Stocks & Shares ISA.
Stocks and Shares ISAs are a very popular way to invest in the UK because they mean you don't have to pay capital gains and dividend tax.
And most people automatically assume that they HAVE to use a Stocks and Shares ISA to invest - otherwise the taxman will decimate your portfolio.
But the UK also has very favourable 0% tax bands on capital gains and dividend tax which mean a Stocks & Shares ISA is not really going to be relevant for many people.
And if you are investing smaller amounts, a General Investing account can be a better option.
This is because Stocks & Shares ISAs are generally more expensive - whatever it is that you invest into - ETFs, US stocks, UK stocks, dividend stocks or anything else, there is usually a cheaper way to do it outside an ISA than through a Stocks and Shares ISA account.
And especially if you are starting out, a free or cheap General Investing account can be a great way to try things out and learn the ropes without having to pay more.
And you can always switch to using a Stocks and Shares account later if your investments grow - your annual ISA allowance is £20,000 which is plenty for most people.
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💵 GREAT INVESTING APPS I USE
GET A $10 BONUS WITH LIGHTYEAR (UK & Europe)
https://lightyear.app.link/SashaYanshin
You need to use promo code "Sasha" and the bonus is awarded after your first trade.
INTERACTIVE BROKERS (Global - Main investing app I use)
https://bit.ly/ibkr-sasha
DISCLAIMER: Your capital is at risk.
DISCLAIMER: Some of these links may be affiliate links. If you purchase a product or service using one of these links, I will receive a small commission from the seller. There will be no additional charge for you.
DISCLAIMER: (For Lightyear affiliate link) The provider of investment services is Lightyear Financial Ltd for the UK and Lightyear Europe AS for the EU. Terms apply: golightyear.com/terms. Seek qualified advice if necessary. Capital at risk.
DISCLAIMER: Trading 212 provides execution-only service. This video should not be construed as investment advice. Investments can fall and rise.
DISCLAIMER: I am not a financial advisor and this is not a financial advice channel. All information is provided strictly for educational purposes. It does not take into account anybody's specific circumstances or situation. If you are making investment or other financial management decisions and require advice, please consult a suitably qualified licensed professional.
The UK Government has slashed the 0% Capital Gains amount from £12,300 to £6,000 in 2023/2024 tax year and down to £3,000 the following year. This significantly affects the points discussed in this video, but for very low amounts invested initially, where even £3,000 is an exceptionally high gain relative to money put in, the video still explains a useful point.
In this video I will explain why you shouldn't use a Stocks & Shares ISA.
Stocks and Shares ISAs are a very popular way to invest in the UK because they mean you don't have to pay capital gains and dividend tax.
And most people automatically assume that they HAVE to use a Stocks and Shares ISA to invest - otherwise the taxman will decimate your portfolio.
But the UK also has very favourable 0% tax bands on capital gains and dividend tax which mean a Stocks & Shares ISA is not really going to be relevant for many people.
And if you are investing smaller amounts, a General Investing account can be a better option.
This is because Stocks & Shares ISAs are generally more expensive - whatever it is that you invest into - ETFs, US stocks, UK stocks, dividend stocks or anything else, there is usually a cheaper way to do it outside an ISA than through a Stocks and Shares ISA account.
And especially if you are starting out, a free or cheap General Investing account can be a great way to try things out and learn the ropes without having to pay more.
And you can always switch to using a Stocks and Shares account later if your investments grow - your annual ISA allowance is £20,000 which is plenty for most people.
☕️ JOIN MY PATREON - DISCORD, BONUS VIDEOS, TARGET PRICES, MODELS & MORE
Patreon: sashayanshin
💵 GREAT INVESTING APPS I USE
GET A $10 BONUS WITH LIGHTYEAR (UK & Europe)
https://lightyear.app.link/SashaYanshin
You need to use promo code "Sasha" and the bonus is awarded after your first trade.
INTERACTIVE BROKERS (Global - Main investing app I use)
https://bit.ly/ibkr-sasha
DISCLAIMER: Your capital is at risk.
DISCLAIMER: Some of these links may be affiliate links. If you purchase a product or service using one of these links, I will receive a small commission from the seller. There will be no additional charge for you.
DISCLAIMER: (For Lightyear affiliate link) The provider of investment services is Lightyear Financial Ltd for the UK and Lightyear Europe AS for the EU. Terms apply: golightyear.com/terms. Seek qualified advice if necessary. Capital at risk.
DISCLAIMER: Trading 212 provides execution-only service. This video should not be construed as investment advice. Investments can fall and rise.
DISCLAIMER: I am not a financial advisor and this is not a financial advice channel. All information is provided strictly for educational purposes. It does not take into account anybody's specific circumstances or situation. If you are making investment or other financial management decisions and require advice, please consult a suitably qualified licensed professional.
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