Is there any reason to not put money into a stocks and shares ISA over a regular investing account?

Question

I have a small amount of money in a regular investment account however I am considering putting more in.

The UK tax-free dividend allowance is £2,000, although will reduce to £1,000 in the new financial year.

The UK tax-free capital gains allowance is £12,300, although will reduce to £6,000 in the new financial year.

I am aware that the UK you have a £20,000 ISA limit. So is there any downside to moving my investments, and putting additional money, into a stocks and shares ISA? Assuming I am not using the full £20,000 allowance between a cash ISA and stocks and shares ISA anyway.

Answer 1

You can only pay into one Stocks and Shares and one cash ISA in a single tax year. Given that you don't have any others, then I don't think there is any reason you wouldn't want to use your ISA allowance.

There's the possible of higher fees in the ISA wrapper, or restricted choice. You would want to check that with your provider.

Also, any losses in your ISA wouldn't be able to be used to balance other CGT gains. However, you're probably going into investing with the aim of not making losses, so this is very much a secondary concern.