5 ISA Mistakes You Need to Avoid

Here are 5 Investing mistakes/ points that are not spoken about too much and little details people miss when using their UK ISA accounts (Individual savings accounts). Everything from looking at how dividends are counted to what can you do with an old account? How does a stocks and shares ISA compare to a cash ISA and are they both flexible? Here's what the rules are right now and I'll evidence each one. As mentioned in the video please check the latest rules on the Gov.UK website and check with your provider too things can and do change over time.

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[PrinciplesPersonalFinance]

Really good, informative video mate! Nice one 🙌

[MegaBankjob]

Very nicely put together, Great video as always Toby

[AC-SlaUkr]

Love your vids. They’re really easy to follow.

[hanson]

Love the video! You explain it very well. Please I have one question, for 2 years fixed rate cash ISA, can I switch to a better rate ISA within the 2 years? Also what happens after 2 years? do I have to open another ISA and re-start to accumulate the money? Thank you so much

[nicobass]

Thanks again Toby as great content for many to think about. I'm trying to max my ISA allocation between S&S and cash accounts this FY, although I think the higher return on locked in cash ISA is the better option at the moment for the next FY, although the market is on the move. All a bit of a gamble really and we do not have a wand for sure, keep the content coming, thanks

[sybaritic]

Sound advice as ever, Toby. 08:47 - I'm hoping that's future me!

[jabberwockytdi]

With the lifetime allowance frozen and who knows if it will really be increased again anytime soon, whereas while working it can make sense to use SIPPs rather than ISA's, once your retire it is worth looking at getting as much of your savings as possible into the ISA wrapper. yes you loose 15% tax when you take that money out of your pension fund which puts you back a couple of years investment returns, but after that everything you draw out of your ISA is tax free and it can make a difference as to whether you hit the lifetime allowance or not (expensive ) and that will get more and more likely the longer wages (and therefore pension contributions) are driven up alongside high inflation and the allowance isn't increased.

[ianlewis]

If you buy a REIT always put it in your IS A first before shares.

[ChrisShawUK]

I use a function on my platform called bed & ISA to transfer between my trading account and Isa account without needing to sell (I think they are technically sold and rebought inside the wrapper but it's transparent to the investor).

You do have to check that if there's any CGT to pay because it's a taxable event, but otherwise a nice way to put taxable portfolio underneath the ISA wrapper

[adammirza]

Hi, i was about to open a S&S ISA and Junior S&S ISA for myself and kids, investing in the Global all cap fund. However we move to Australia in a year, is it still worth me opening these accounts or should I take an alternative approach?

[anonnymous]

I only found out this week that cash balances in an ISA pay interest - current;y around 3.25% with Vanguard but likely to rise further after the BoE meet in February.. Not a bad option if you have some spare cash lying around.

[Bosshog-WealthHealthBetterment]

Fell for point 1 myself, luckily "only" cost me about 300 shortfall on my 20K as I realised fairly quickly and after enquiring, was informed exactly as described here. Annoying though! :)

[dhruvmaurya]

Thanks for the video. Would be interested in similar one on SIPP account please.

[cameronh]

Hi Toby, as someone who is very new to investing I love your content!
I have a question: I have a lifetime ISA with a building society and I am hoping to open a stocks and shares ISA soon, probably with Vanguard - am I allowed to have these 2 ISA’s on different platforms? I know I’m allowed one of each ISA, but just unsure if I am allowed to contribute on different platforms in the same year, even though they are for different ISAs. Thank you!

[demoniclaw]

my one is just about to end
but the letter is confusing
tell you do you want to redo it but do not tell you how much and what will happen to the added money you made was like 5.1% bonus
was thinking the added money will just go into the account .... or all of it if I did not contact them kinda scary only bit of info I need

[seiscero]

Thank you for the very informative video.

When you make a sale of your stocks in your NON ISA account and you don't hit the 12300gbp gain (or 2000gbp divident income) you need to report the sale anyways to HMRC even though you don't owe tax? Or you don't need to do anything?

Thanks in advance and sorry for the noob question.

[marksharman]

Thanks for the video Toby, very useful information and a great channel. Could I ask, I already have an ISA with Invest Engine and a stocks & shares invest account with Trading 212. When the new tax year arrives is it possible to either change the Trading 212 investment account to an ISA account, transfer shares to a new ISA account, or do they have to be sold and re-purchased under the new ISA banner, thanks again.

[MrPW]

There is another little known rule, I can't remember the name, but if a person dies, the whole content of their ISA can be transferred to the ISA of the surviving spouse without affecting their annual allowance or paying tax.. However, I'm not clear if it is included in the calculation for inheritance tax.

[Bonk-A-Lonk]

What happens if I go over my isa allowance by accident ?

[jamesmilford]

Sorry if you covered this question when talking about transferring ISA’s across platforms but does this also include a LISA transfer? I have a LISA with only a bit of money in and would like to transfer it to my stocks and shares ISA account on another platform…wondering if this is possible. Great content as always mate really enjoy learning from your channel.