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Is it true to say that the annual CGT exempti...
Question
Is it true to say that the annual CGT exemption of 10,100 only apply to money invested in stocks held in an ordinary stock account (non ISA)? Hence, to get max tax exemption, best is to use up my ISA allowance first, then only invest using ordinary stock account? - Posted by Janny
Answer
ANSWER 22nd January 2010
Hi Janny,
The stocks in the ISA are completely sheltered from CGT, in fact you don't even have to declare them. Likewise if you make a capital loss you cannot claim it. I think the idea of an ISA is to gradually build up a large tax sheltered fund over several years.
Yes I think you are right, start your ISA first and then invest in non-ISA share account. Don't forget, if you are married you effectively have two lots of CGT allowance and two lots of ISA.
If you want to know everything about tax and investments I recommend the Investors Tax Bible: http://www.taxcafebooks.co.uk/rescart.php?id=11370
It is written by a qualified tax accountant and covers every aspect of investment taxes and how to minimise them.
Hi Janny,
The stocks in the ISA are completely sheltered from CGT, in fact you don't even have to declare them. Likewise if you make a capital loss you cannot claim it. I think the idea of an ISA is to gradually build up a large tax sheltered fund over several years.
Yes I think you are right, start your ISA first and then invest in non-ISA share account. Don't forget, if you are married you effectively have two lots of CGT allowance and two lots of ISA.
If you want to know everything about tax and investments I recommend the Investors Tax Bible: http://www.taxcafebooks.co.uk/rescart.php?id=11370
It is written by a qualified tax accountant and covers every aspect of investment taxes and how to minimise them.
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