stokeloans
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Post by stokeloans on Apr 1, 2016 6:18:29 GMT
If you haven't already done so, take the money out and max out your isa...........I suspect that has accounted for some of the reduction in funding on many of the p2p platforms over the past couple of weeks Why would any right minded investor take money out of a 12% return to put into an ISA paying a couple of % if you're lucky ? ISA's are dead in the water in my opinion
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pom
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Post by pom on Apr 1, 2016 7:09:34 GMT
If you haven't already done so, take the money out and max out your isa...........I suspect that has accounted for some of the reduction in funding on many of the p2p platforms over the past couple of weeks Why would any right minded investor take money out of a 12% return to put into an ISA paying a couple of % if you're lucky ? ISA's are dead in the water in my opinion Maybe so then can later transfer it back into a new p2p ISA when they become available (and maybe this is their most liquid spare cash to do so)
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sl75
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Post by sl75 on Apr 1, 2016 7:10:52 GMT
Why would any right minded investor take money out of a 12% return to put into an ISA paying a couple of % if you're lucky ? ISA's are dead in the water in my opinion Have you missed all the discussions about IFISA accounts expected to launch as soon as the FCA gets into gear with the full authorisations for P2P platforms? In order to transfer the balance into one of your preferred P2P provider's ISA wrapper accounts (as and when any such account launches), the money will already need to be in an ISA. Presumably together with the 2016/17 allowance as a new subscription of fresh funds.
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Post by caveman38 on Apr 1, 2016 7:11:37 GMT
When is the interest paid into your account?
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pom
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Post by pom on Apr 1, 2016 7:13:57 GMT
Usually late morning but it varies a bit
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stokeloans
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Post by stokeloans on Apr 1, 2016 7:24:45 GMT
Why would any right minded investor take money out of a 12% return to put into an ISA paying a couple of % if you're lucky ? ISA's are dead in the water in my opinion Have you missed all the discussions about IFISA accounts expected to launch as soon as the FCA gets into gear with the full authorisations for P2P platforms? In order to transfer the balance into one of your preferred P2P provider's ISA wrapper accounts (as and when any such account launches), the money will already need to be in an ISA. Presumably together with the 2016/17 allowance as a new subscription of fresh funds. P2P ISAs are in the pipeline, maybe. Could be a long time before they actually come online....unless you fancy Zopa and their measly returns
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nick
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Post by nick on Apr 1, 2016 7:51:45 GMT
If you haven't already done so, take the money out and max out your isa...........I suspect that has accounted for some of the reduction in funding on many of the p2p platforms over the past couple of weeks Why would any right minded investor take money out of a 12% return to put into an ISA paying a couple of % if you're lucky ? ISA's are dead in the water in my opinion Because you will save 20%-60% of gross interest income (depending on your tax bracket) if you earn more than £1,000 a year in interest next year and will continue to enjoy this benefit in perpetuity. If you have spare funds, or even other medium/long term funds currently invested in P2P platforms, most people will be better of withdrawing this cash and parking it in an ISA in cash form and then transferring the balance across to IFISAs over the coming year. The benefit could be marginal this year if we have to wait another 6 months for IFISAs to launch, but you receive the tax benefit every year so it is a no brainer if you longer term savings you aren't expecting to use in the medium term. By not using your ISA allowance, you lose this valuable tax free shelter forever.........
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ilmoro
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Post by ilmoro on Apr 1, 2016 8:22:48 GMT
And if you put it into an ISA that is Flexible after 6th April you can take it all out & put it back into P2P on 7th without loosing the ISA allowance. Just have to stick it back before 5 April 2017.
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stokeloans
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Post by stokeloans on Apr 1, 2016 8:25:52 GMT
Why would any right minded investor take money out of a 12% return to put into an ISA paying a couple of % if you're lucky ? ISA's are dead in the water in my opinion Because you will save 20%-60% of gross interest income (depending on your tax bracket) if you earn more than £1,000 a year in interest next year and will continue to enjoy this benefit in perpetuity. If you have spare funds, or even other medium/long term funds currently invested in P2P platforms, most people will be better of withdrawing this cash and parking it in an ISA in cash form and then transferring the balance across to IFISAs over the coming year. The benefit could be marginal this year if we have to wait another 6 months for IFISAs to launch, but you receive the tax benefit every year so it is a no brainer if you longer term savings you aren't expecting to use in the medium term. By not using your ISA allowance, you lose this valuable tax free shelter forever......... But the current ISA returns are minimal.I'd rather pay tax on 12% than have 2% tax free. Or am I missing something here ? When P2P ISA's are available I may well rethink my strategy. BTW I do actually have cash ISA's at the moment 
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nick
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Post by nick on Apr 1, 2016 8:37:47 GMT
Because you will save 20%-60% of gross interest income (depending on your tax bracket) if you earn more than £1,000 a year in interest next year and will continue to enjoy this benefit in perpetuity. If you have spare funds, or even other medium/long term funds currently invested in P2P platforms, most people will be better of withdrawing this cash and parking it in an ISA in cash form and then transferring the balance across to IFISAs over the coming year. The benefit could be marginal this year if we have to wait another 6 months for IFISAs to launch, but you receive the tax benefit every year so it is a no brainer if you longer term savings you aren't expecting to use in the medium term. By not using your ISA allowance, you lose this valuable tax free shelter forever......... But the current ISA returns are minimal.I'd rather pay tax on 12% than have 2% tax free. Or am I missing something here ? When P2P ISA's are available I may well rethink my strategy. BTW I do actually have cash ISA's at the moment But why not have your cake and eat it by: 1. Parking your cash in any ISA before 5 April 16 that has no restriction in transfers out (I've just parked the cash in an existing share ISA where I have no intention of buying shares) 2. Transfer this cash from your ISA to IFISA when these are launched by P2P platforms over the next 3-6 mths (most are timetabled to receive their FCA authorisations over the next quarter) 3. Enjoy the 20%-60% boost in net interest income for life (not just this year - assuming no changes in tax law) The third point is probably the most important, you get the benefit for life and if you don't use this year's allowance you lose it for good. Now if you only have short term funds and need to use the money within the next 12 months then it probably isn't worth doing the above, otherwise it should be a slam dunk....
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brin
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Post by brin on Apr 1, 2016 8:38:17 GMT
And if you put it into an ISA that is Flexible after 6th April you can take it all out & put it back into P2P on 7th without loosing the ISA allowance. Just have to stick it back before 5 April 2017. (imaginary 15k) To make sure you get the interest tax free, would i have to put the 15k and the interest earned for the 363 days back into the isa? or just the 15k.
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SteveT
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Post by SteveT on Apr 1, 2016 8:43:18 GMT
But the current ISA returns are minimal.I'd rather pay tax on 12% than have 2% tax free. Or am I missing something here ? When P2P ISA's are available I may well rethink my strategy. BTW I do actually have cash ISA's at the moment But why not have your cake and eat it by: 1. Parking your cash in any ISA before 5 April 16 that has no restriction in transfers out (I've just parked the cash in an existing share ISA where I have no intention of buying shares) 2. Transfer this cash from your ISA to IFISA when these are launched by P2P platforms over the next 3-6 mths (most are timetabled to receive their FCA authorisations over the next quarter) 3. Enjoy the 20%-60% boost in net interest income for life (not just this year - assuming no changes in tax law) The third point is probably the most important, you get the benefit for life and if you don't use this year's allowance you lose it for good. Now if you only have short term funds and need to use the money within the next 12 months then it probably isn't worth doing the above, otherwise it should be a slam dunk.... If you don't expect to be in a position to use your full ISA allowance in 16/17 and beyond then there's less point in using up your 15/16 allowance. However if you're typically investing (or reinvesting from non-ISA savings) more than the ISA allowance each year then it's a no-brainer to make sure you get the maximum amount of cash inside an ISA wrapper before the end of the tax year.
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brin
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Post by brin on Apr 1, 2016 8:45:45 GMT
Is this only available this april, or will it be there every april?
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ilmoro
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Post by ilmoro on Apr 1, 2016 8:47:00 GMT
And if you put it into an ISA that is Flexible after 6th April you can take it all out & put it back into P2P on 7th without loosing the ISA allowance. Just have to stick it back before 5 April 2017. (imaginary 15k) To make sure you get the interest tax free, would i have to put the 15k and the interest earned for the 363 days back into the isa? or just the 15k. You wont get the interest tax free if its taxable but you would preserve the allowance. Depends on individual situation whether doing it is beneficial or not but an option now. Permanent change provided available from providers & govt doesnt reverse. Theres a thread already if you search
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brin
I am trying to stay calm.
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Post by brin on Apr 1, 2016 8:51:26 GMT
(imaginary 15k) To make sure you get the interest tax free, would i have to put the 15k and the interest earned for the 363 days back into the isa? or just the 15k. You wont get the interest tax free if its taxable but you would preserve the allowance. Depends on individual situation whether doing it is beneficial or not but an option now. Ahhh.. got it now. thanks for that. Not being very isa clever, i was under the illusion that if you put your full allowance in you could then transfer to IFISA and get yor interest tax free. (no idea where i got that from, but i must admit at first i was sat here rubbing my hands together with glee)
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