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14

The problem you will have with ISAs is the limit on how much you can invest per year. It's currently £20,000 per year. So even if you have a big lump sum now, you can't invest it all in an ISA. You may need to invest the rest in a non-ISA account, perhaps feeding it into an ISA at the maximum rate allowed. If you currently have money in cash ISAs, then you ...


10

You understood it pretty right. Every fiscal year (which runs from April 6 year Y to April 5 year Y+1), you can deposit a total GBP15k (this number is subject to an annual increase by HMRC) into your ISAs. You can open 2 new ISA every year but the amount deposited to those ISAs shall not excess GBP15k in total. From the 2016/17 tax year some ISAs now ...


10

According to https://www.helptobuy.gov.uk/help-to-buy-isa/faq/#998e24ea-e1f7-648f-8ce9-ff0000ad17aa : A first time buyer is someone who does not own, and has never owned, a home anywhere in the UK or the world. So you don't count. The most detailed government guidance I can find does say (section 3.11) that: the government bonus can only be put ...


10

Your question is actually quite broad, so will try to split it into it's key parts: Yes, standard bank ISAs pay very poor rates of interest at the moment. They are however basically risk free and should track inflation. Any investment in the 6-7% return range at the moment will be linked to stock. Stock always carries large risks (~50% swings in capital ...


9

What you refer to as "cumulative" is normally called compounding. Note that while I know your example is fictitious, but 2% per month is totally beyond the realms of possibility - 2% per year is the right order of magnitude. Usually interest rates are quoted as annual equivalent rates (AER), which in effect means that they are compounded annually. Also, ...


8

The cash ISA limits will be going up to £15,000 in July as part of the recently announced "New ISA" changes in the Budget, so if you don't expect any more significant amounts to save in the next tax year there's no desperate need to rush to use this year's allowance. Of course if you might have another £10,000 before next March then definitely use the £5,760 ...


8

From the FAQ I think it is fairly clear that it is OK: Can I open a Help to Buy: ISA with someone else? No. Help to Buy: ISAs are only available to individuals. But, you can put more than one government bonus towards the home you are buying. So, if you are buying a home with someone else who is also a first time buyer, they can open and save money ...


8

After doing some more digging I figured there are two parts of this problem: Being able to use the UK investment ISA after moving abroad. Taxing the profits from investments. Re. 1: It was very confusing to get the straight answers to this question, because I contacted several UK financial institutions who provide investment ISAs by phone and email. In ...


8

The Money Saving Expert page on LISAs confirms that you must take out a mortgage: If you're lucky enough to be buying your first property with cash, you'll pay the withdrawal charge to access your LISA savings (unless you're over 60) as you need to be buying with a mortgage to use the LISA and bonus. It also clarifies that the LISA terms do not stipulate a ...


8

Either the normal annual allowance, or (the normal annual allowance plus £12,000), depending on if your ISA is 'flexible'. From the gov.uk information page (my emphasis): If your ISA is ‘flexible’, you can take out cash then put it back in during the same tax year without reducing your current year’s allowance. Your provider can tell you if your ISA is ...


8

There are retirement calculators online that you can use to estimate your income in retirement. Here’s one that the Australian government provides. Just about the only thing that can be confidently said about when to start retirement planning is that if you haven’t started planning for it, then ‘now’ is the earliest you have available. Tomorrow will be later,...


7

Depending on your tax situation, a cash ISA will probably beat other savings accounts because you won't pay tax on it. If you're saving over a longer term, a fixed rate ISA should offer a better deal, but of course interest rates could go up in that term. We're very close to the end of the year now so you could put in £5760 now and the remainder next month....


7

Your main choices are ISAs and property. You can put over £15,000 per year into an ISA, which means over £450,000 by the time you retire, not allowing for growth in your ISA investments. But if you're paying rent, and worried about being able to pay rent when you retire, the obvious choice is to buy a flat now on a thirty-year mortgage so that you can stop ...


7

The Skipton Building Society has recently announced that it is offering a cash LISA. According to the papers it is the first to offer a cash LISA. Skipton is the UK's 4th largest UK Building Society and has been in existence since 1853. There are other providers of LISAs such as Hargreaves Landsdown. Hargreaves Lansdown is listed on the FTSE 100 i.e. it's ...


7

Not very well thought out is it? It does still potentially help with the deposit, but since the government are terrified of you getting the 25% extra without a house to show for it, they have made it so you can use it for completion but not initial deposit at the exchange. Which for the people its trying to help is not convenient at all. The way round it ...


7

ISAs last for as long as you live - you can accumulate a further £20K each following year (or whatever the limit changes to) and the whole balance including gains is tax free. You can also leave the £21k in the first ISA, and open a new ISA the next year, if you prefer. You can also transfer a balance from one ISA to another (make sure you go through the ...


7

The Lifetime ISA has existed for 2 years. In each of those years the annual limit has been £4000 and the bonus has been fixed at 25% in each period too. The government could change both the limit and the bonus in the future but have announced no plans to automatically index link either. ISAs have existed for much longer and their limits have changed over ...


6

You almost never want to repay a pre-2012 student loan early. As you've realised, you can put the money in an ISA instead and earn more interest than you're paying on the loan. If you withdrew money from the ISA each month to replace the repayments being taken from your salary, there'd be money left in the ISA when you finished repaying the loan. This is ...


6

This sounds like a FATCA issue. I will attempt to explain, but please confirm with your own research, as I am not a FATCA expert. If a foreign institution has made a policy decision not to accept US customers because of the Foreign Financial Institution (FFI) obligations under FATCA, then that will of course exclude you even if you are resident outside the ...


6

Your existing shares in their existing ISA(s) do not in any way impact on your future ISA allowances. The only thing that uses up your ISA allowance is you paying new cash into an ISA account. So you can leave your existing shares in their existing ISA(s) and simply open new ISA(s) for future contributions which suit your current plans.


6

The first thing to note is that if you want to make the change without consuming any of this tax year's ISA allowance you must select a new account which allows transfer in and make sure you follow the new provider's transfer process. All providers must allow transfer out but processing transfers in is optional so not all providers do it for all accounts. ...


6

The contribution limits are per year, so you can certainly make them all in a single lump sum at any time you like, including right at the end of the tax year, and you'll still get all the benefits like the government bonus. Of course you'll miss out on the tax-free growth up till that point. Be sure to allow enough time for the payment to go through. If ...


6

For ISA contributions made this tax year, you can only transfer the entire contribution (I think this is so just one provider can keep track that you haven't gone over the limit). For contributions made in past tax years, you can transfer just some of them if you want, so you should be able to make one transfer to the first receiver and then a second ...


6

This looks fine, and depending on your exact risk profile is probably pretty close to optimal for someone of your age and aims. You should just jump in and buy them in their relevant percentages from the start if buying funds in an ISA as there are no trading costs and this should be above the minimum unit purchase size depending on the exact platform you ...


6

It depends. A Stocks and Shares ISA is really just a wrapper around a shareholding account. The value of the account isn't really dependant on the fact that it's an ISA, its value is based on the shares you hold within it. Suppose, for example, you decide to hold an S&P 500 tracker in your account if the pound goes down relative to the dollar you could ...


6

15 Years is surely not too late but it puts you into a pretty disadvantage. You cannot let time work for you through compounding You cannot let time work four you to work out bad times These two constraints mandate an investment portfolio that is tilted towards safer assets and high contributions compare to a portfolio of your younger self that targets the ...


5

Yes, you can continue to contribute to the new ISA after the transfer. You can also transfer a cash ISA from this year to a stocks and shares ISA and then open a new cash ISA.


5

I am not a Financial Advisor, but I an tell you what I did in exactly this situation - which is pretty much what you are proposing. I put money into the offset savings account until I had only a small amount of mortgage "balance" left (less than a year's worth of mortgage payments), then I set it up so that each month I did the transfer from the offset ...


5

Appreciate the answer has already been chosen, but thought it worth adding: As of 2016/17 tax year, there is a new Personal Savings Allowance (PSA) in the UK which means you can earn up to £1,000 of savings interest, tax-free, every year without needing to use an ISA. The level of PSA depends on your income tax band, as follows: Tax band | ...


5

Yes, transferring in to an ISA does not count as subscribing to it, and it is subscriptions that are limited to one per year. See eg here - I won't paste an excerpt as it really needs the context of all the answers on the page, but in summary it supports my "Yes you can" above. By the way, if you want a definitive answer from HMRC you can ring their ISA ...


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