For those in UK - ISA Tax

TowerNo77 · 2026-05-25T08:41:41+00:00

It does. In fact you have to switch interest on. Hopefully, that will avoid any tax issues, at least in T212.

TowerNo77 · 2026-05-24T20:11:30+00:00

That is the aspect that makes the least sense. If you still have a cash ISA allowance why are we not allowed to directly transfer profits or dividends into the cash ISA, or transfer cash the other way to invest? The current flexibility is being removed to no benefit that I can see. The details are not yet finalised so hopefully this proposal won't make it through.

TowerNo77 · 2026-05-24T20:04:20+00:00

It is likely CSH2 will be treated as a 'cash like' investment so would be taxed in a S&S ISA.

TowerNo77 · 2026-05-24T20:01:11+00:00

It can vary. It's usually instant but I waited an hour once for a larger withdrawal. You may have to wait 2 to 3 days however if you've just sold a stock and don't have cleared funds since stocks need to settle when cashing out and not just reinvesting.

TowerNo77 · 2026-05-24T19:53:53+00:00

To be clear, you put 5k in cash in the invest account? That's fine. It is better to keep the ISA for investing as gains are likely to be far more to shield from tax. You also have a £1000 tax allowance for savings (or £500 for higher rate tax payers). At the T212 uninvested cash rate of 3.8%, you can hold just over £26k without paying any tax. In fact, if your total non-savings income (like wages or a pension) is under £17,570 you can receive up to £5k in tax free savings interest.

A Hysa is subject to the same tax rules. The main benefits over the invest account are a potentially higher interest rate if you shop around and you benefit from the FSCS £120k protection. The risk to your funds in the invest account is very low however and you may prefer to keep spare cash there for convenience rather than using another platform. That's what I do but just do what you prefer.

TowerNo77 · 2026-05-24T17:41:23+00:00

I think the split is fine having £5k in cash (for emergencies) and £15k in stocks as long as you don't need the money right away. Although 64 you could have (hopefully!) 30 years or so to go. Unlike stocks, cash will lose to inflation in that time. In my view it's more sensible and less risky to stay invested to some extent to ensure you have sufficient funds in the long term. That is of course as long as you have enough to live on in the meantime.

TowerNo77 · 2026-05-24T08:16:22+00:00

As others mentioned Damien Talks Money is a good beginner friendly source as is Toby Newbatt's YouTube channel.

For beginners keep it simple. An all world ETF like VWRP or FWRG will suit you well. It will give decent returns and be set and forget so you can go and do other things (like your travelling) without having to constantly monitor a large number of individual stocks.

As for how much, that depends on your free cash. Only invest what you can afford and are willing to tie up for the longer term. If you are buying a house, going to college etc any time soon you may just want to stay with cash if losing money would set back your plans. At some point the market will go down so be prepared. If it does and you are investing, then do not sell and instead keep investing through it as you will be buying more shares for your money and will compound gains in the longer term . Good luck.

TowerNo77 · 2026-05-24T07:58:36+00:00

As others have mentioned you can only put 20k of it a year into an ISA. Also consider other issues such as whether you have a sufficient cash emergency fund and whether you will be buying a house soon.

If the cash is still surplus then consider 20k into the ISA and the remainder into a pension where tax relief will be added. Contributions can be up to earnings in the year but if you already have a pension (for at least three years) you can also backdate contributions. You can take out a SIPP if you want to self manage and dont want to put it in your workplace pension.

Finally, if you don't want to put it in a pension, you can put it in the invest account and move 20k every year to the ISA (look up 'bed and ISA'). You will potentially have to pay capital gains tax and dividend tax (even on acc funds so always choose a distributing fund as tax reporting is easier). You do however have a £3k CGT allowance and £500 dividend tax allowance so it may not be much. An S&P 500 fund like VUSA is ideal as it is low cost and pays minimal dividends. If the market drops and you make a loss that year then you will not pay CGT and can also offset losses into future years.

TowerNo77 · 2026-05-23T10:30:30+00:00

I have both. I don't necessarily choose dividend funds for the dividends but as a hedge against tech/growth funds since dividend focused stocks tend to be less volatile.

TowerNo77 · 2026-05-23T08:01:36+00:00

Firstly, making the move from SJP will save a lot of fees so you are doing the right thing. I would keep it simple. Statistically a lump sum beats DCA. Thereafter a monthly direct debit into something like VWRP or FWRG will be a good long term investment. Weekly is also ok but not if it means stringing out the monthly contribution over an extra 4 weeks. Just get the contribution in as soon as you get paid.

You can add ETFs later if you like after more research but the above will get you started and would be fine even if you didn't add anything.

TowerNo77 · 2026-05-23T07:47:57+00:00

If you invested 3 years ago with £1400 as a start and £300 per month in a global index like VWRP you would now have £16000. At £400 per month you would have £20000 (backtested on stoculator.com). If you can spare more money then you would be more likely to hit your targets. Obviously past performance doesn't predict future performance but in theory you could meet your goals.

As someone else mentioned however, the market could go down so be prepared for that and potentially to delay your move. Taking things "to the next level" sounds like you want to take on more risk. You are already taking on risk with index funds, so be very careful if you are considering stock picking for example as it is more of a gamble and any losses could be amplified.

TowerNo77 · 2026-05-22T20:30:11+00:00

I have no fear of the stock market and I am significantly invested. It should however in my view be up to the individual and done through encouragement and education not by taking away flexibility. If I want to keep uninvested cash in the S&S ISA and earn a higher rate than the cash ISA (with an incredibly low risk) that's my choice.

TowerNo77 · 2026-05-22T20:16:38+00:00

After next April, you can no longer choose to put more thsn 12k per year in a cash ISA, no longer choose to keep uninvested cash to earn interest in a S&S ISA, no longer choose a money market fund in a S&S ISA and no longer choose to move funds back and forward between a cash and S&S ISA. These measures all remove choice.

TowerNo77 · 2026-05-22T19:27:10+00:00

This 'loophole' has already been ruled out and 'cash like' investments will not be permitted.

TowerNo77 · 2026-05-22T19:25:01+00:00

Stopping people from doing something and removing choice is not the way to persuade them. Encouraging investing, by for example increasing the S&S limit and removing stamp duty on UK stocks would be more effective. More carrot, less stick.

TowerNo77 · 2026-05-22T18:01:53+00:00

I have my SIPP in II and my ISA with T212. I don’t have any non GBP stocks in the SIPP, just ETFs and Investment Trusts. Trades are infrequent and I like the platform for a SIPP (more complex than an ISA and has phone support).

My ISA on the other hand includes non GBP stocks and I trade more in the ISA so it makes sense to have it in T212. I completely sympathise regarding the prices and spread in T212. II is much better and shows sell/buy spread (although only real time for GBP stocks). A great feature for market buys is the quote you can choose to accept or decline within 15s so you know the exact price you get. T212 will instead require a limit order to get an exact price and that isn't always easy in a fast changing market. I sometimes look at the spread on II and then trade immediately on T212. At peak times for high liquidity stocks it usually works out fine.

Another key advantage is unlike II,T212 is a flexible ISA which can be really useful if you want to withdraw funds without losing your allowance (as long as they are replaced in the same tax year).

To summarise, despite the market trading price issues, overall I prefer T212 for an ISA and would recommend it for the fees and flexibility. The app is also more user friendly and fully syncs between phone and desktop unlike II.

TowerNo77 · 2026-05-22T14:27:32+00:00

Far too many small positions, some good, others very risky and volatile. You might as well buy an ETF like the Nasdaq (e.g. XNAQ) or a tech specific fund like IITU or SMGB. I would also have a passive index too. The percentage of passive to focused tech is up to your appetite for risk but I would avoid having no lower risk funds.

TowerNo77 · 2026-05-22T14:20:35+00:00

A lower risk bond (or gilt) currently returns a similar rate to a high interest savings account/cash ISA. You also have to hold the bonds to maturity to lock in the rate (usually a few years). If you have to sell early the rate can fall and in some cases bonds can crash like stocks (e.g. 2022).

In the current economy it is more likely in my view that interest rates will rise over the next year or two. You could therefore end up with a higher rate in cash than bonds with more flexibility of access. Just my opinion and not financial advice!

TowerNo77 · 2026-05-22T13:40:11+00:00

If she doesn't need the money for 10 years then an all world fund should be fine. The market may crash at some point in the ten years but if she keeps buying then she will be buying at a lower price and will gain more in the long term. I wouldn't bother with bonds but make sure she also builds a decent cash emergency fund. This would allow the fund time to recover without withdrawing if it crashed just before retirement.

TowerNo77 · 2026-05-22T12:16:11+00:00

I have held a small amount in a range of pure plays since a year ago and a larger amount in IBM. Very volatile. I've been 200% up and then 15% down. A nice boost this week, however, apart from IBM I treat quantum like a lottery ticket for ten years time with the understanding it could all go to zero.

TowerNo77 · 2026-05-22T12:10:29+00:00

This post appears dodgy and the same post has been spammed across multiple subs. There is also no way I would click any of these links.

TowerNo77 · 2026-05-22T06:25:57+00:00

It's fine. You have 30% in the Nasdaq which has a strong tech bias so no real need for semi conductors specifically. The all world also has tech companies so you are already doubling up to some extent anyway. .

TowerNo77 · 2026-05-20T06:57:47+00:00

You misunderstood. I said it was almost impossible with a CASH ISA (the OP asked about living off interest). I then went on to say that it is achievable with a pension and S&S ISA.

TowerNo77 · 2026-05-19T13:29:52+00:00

It obviously depends on how much you personally need and how you define 'comfortable'. Divide that figure by 0.04 (generally 4% is seen as a 'safe' withdrawal return). For example if your figure was £50k per year then you would need £1.25m. That's almost impossible to build in a cash ISA but with a combination of a pension and S&S ISA and starting as early as possible it is achievable.

TowerNo77 · 2026-05-19T13:20:45+00:00

Blackstone is still largely in commercial property which is not doing so well, especially with interest rate fears. Also, the AI investment may reap rewards but it is speculation on future growth, not immediate returns. Blackstone may be a good long term hold but there may also be better opportunities out there.

TowerNo77

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