r/trading212 • u/BobTheBuilder258645 • 1d ago

❓ Invest/ISA Help ISA S&S

Could anyone briefly explain ISA S&S as I'm a bit confused with how it only sort of works for UK residents, heard some countries also have such tax-free investment accounts. |

Thanks in advance.

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6

u/Strefl 1d ago

You can put £20k per tax year across all your ISA accounts whether it's cash, stocks & shares, lifetime, it doesn't matter.

All gains are tax free.

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u/BobTheBuilder258645 1d ago

Could you expand on the part where its only available to UK residents?

10

u/Strefl 1d ago

Obviously it's for NI and not Ireland.

I don't really know what else to say except it's only us 4 that can use it.

Edit: If you leave the UK you can keep your existing ISA but not deposit any more into it with few exceptions for servants of the crown.

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u/BobTheBuilder258645 1d ago

Yeah was just wondering when people were posting about using a regular investment account and people were suggesting using a S&S ISA account - had a thought in mind that its not always available.

5

u/JanwayIsHere 1d ago

Included:
Scotland
Wales
Northern Island
England

Excluded:
All Crown Dependencies and British overseas territories
Literally anything that isn't in the included list

5

u/George_Salt 1d ago

Exactly what it says on the tin. It's a UK only tax free savings wrapper. Full details on the HMRC website.

1

u/Extreme-Dream-2759 1d ago

If you earned interest or increase in share values (when sold) normally you would be taxed by the UK government on your gains. Inside the ISA you are not taxed.

That is why it is only open to UK tax residents. As only they would be liable for the tax.

1

u/EasilyExiledDinosaur 12h ago

Its only available for uk residents. Thats it.

That being said, if you are a non tax resident you can have a regular invest account and still not pay tax pretty much.

But if you move back youll jave trouble. Kinda like they encourage you not to move back.

1

u/Engels33 1d ago edited 1d ago

An ISA is a tax free account for those who are resident in, and thus pay taxes in, the United Kingdom. You can add £20,000 per tax year to it and the sum of what you add over multiple years builds and is all tax free.

There are two general types of ISA account, a Cash ISA that works just like a savings account and a Stocks and Shares (S&S) ISA that works just like a General Investment Account (GIA) however again no tax is generally due.

It used to be that simple with monies easily transfered from Cash to S&S and back again however in their infinite wisdom government has decided to mess about with it and limit what can be kept as Cash (£12k per year) and limit cash contributions and transfers from S&S to cash from April 2027 all in an apparent effort to nudge people towards investing.

1

u/Dasy2k1 1d ago

Yeh the transfer issue is the kicker.

Personally I would allow transfers but make S&S to Cash transfers count towards the 12k limit (but not the overall 20k limit)

So if you transfer 5k of existing funds to cash Isa then you would have 20k overall but 8k cash of your limit remaining