After listening to your suggestions, out latest guide digs deeper into ISAs!
Freetrade are about to offer an ISA very soon, their pricing model is great so if you have the appetite go for it.
Other providers are available … i suppose.
I think LISAs need a slightly more cautious write-up, when considering vis-a-vis a pension.
In bankruptcy, your pension is off limits, whereas your ISAs generally aren’t…
Had no idea a shares ISA doesn’t protect all dividends!!! Wow that’s a tricky one to look out for on tax returns
Not thought of that, though I presume because you’re unable to withdraw without a massive penalty that would have some bearing?
Not that I’m planning on being bankrupt any time soon!
The trustee can sell the roof over your head, so I should think the small matter of a charge to liquidate your ISA is neither here nor there.
Dare I say it, MSE has a concise writeup of pension v LISA here
It does, the dividend allowance is not relevant to stocks and shares ISAs - all income from them is tax free (no cgt, no dividend tax).
The article should probably be fixed as discussion of a dividend allowance doesnt belong under that ISA. It does say that but it’s just confusing to discuss that under ISAs.
It might be worth amending this ISA guide slightly - I think the bit on S&S ISAs is a bit confusing, as it presents a series of costs you might pay when outside an ISA, and attempts to educate the reader about them which is pretty confusing in a context where they don’t apply (see the confusion in this thread over whether there is a limit on tax free dividend income). The message could be far simpler:
You don’t pay any sort of tax on gains, dividends or interest in an S&S ISA.
Funds should probably also be described as a managed collection of shares or bonds, because their distinguishing features is they are a collection of assets rather than just one thing. They also usually charge a fee for holding, which can be really significant.
I’m not sure I’d say that these ISAs are usually managed by a third party - the majority now are probably self-managed using online platforms like Hargreaves Lansdown or the newly launched Freetrade, even if they are used to buy packaged products like trackers or funds. Would be interested to see figures on this but Hargreaves Lansdown is the biggest player in this space at the moment I think.
Is Monzo looking at offering lifetime ISA’s?
I dont think so but Nutmeg do and you can get 6 months with no fees and £100 with a code if you sign up through my link - pm me if you want it
Personally would love to see Monzo offer one though!