Oh so you have a S&S ISA do you?

[Justin Passing]

As I read it, it’s stocks and shares ISA's only, not cash ISA's isn’t it? If so, perhaps the thread title should be edited.

It's interest on cash held in a S&S Isa

the one that calls others that use the tax system to their advantage *'Tax Dodgers'

Won't be me than, screw the buggers for all you can ...

Accumulating ETF's is one way to avoid it

Yes it is, because although you do get money coming out of the fund as a dividend, that's a dividend in an ISA so is tax free. That dividend doesn't hang around to earn interest. If you used "Inc" versions of funds you would accumulate some cash in the ISA. Not any issue with tax there until it earns interest.

So if you had 10,000 in a fund which spat out a 4% divi, you'd have £400. You might get say 3.6% on that, probably there for half the year, so £7.70. Which would be well under your savings allowance if you didn't have earnings elsewhere.

I can understand having a small amount of cash sitting in a S&S ISA, but why would anyone have a significant amount? Either get it invested, or move it to a cash ISA for a better rate of interest.

It's mad. WHat was it that bloke said about "No one ever went broke underestimating the intelligence of the American people...." Universal I'm sure.

Don’t get me wrong, I hate the idea of a tax associated with an ISA, but the actually monetary effect of this is small.

It seems pointless.

Stocks and shares ISA I'm not clear on.
If you hold shares plus have say £100 cash i didn't think you will pay tax.

As above - it'll be under you allowance if that's all there is, which is £1000 assuming you're a basic rate tax payer.

The obvious thing to do if you want to have the holding looking like cash, is use a Money Market fund, which will be about the same rate as a bldg soc. Rache has said you can't hold ALL your money in one of those. OK so put a quid in Apple. ??
We don't have chapter and verse yet.

MM fund:
CSH2
It just follows the "bank rate".
4.3% in the last 12 months.

There are loads of funds which have done considerably better , say 20%pa+, in the last few years.
I expect some company will come out with a "British investment " fund which will be 95% "investment grade" funds with a total growth slightly better.

The confused will hate it

 

[Justin Passing]

Uninvested cash is subject to tax.

Only the interest on it.

 

[motorbiking]

Correct yes