S&S ISA Vs P2P ISA

Thank you all for contributing, it has brought up probably most of the important points needed and some definite considerations 

@ifisacava the above post makes sense, samford71 you summarise the important considerations - I think you generally agree on the considerations, but have come to different conclusions as to the best choice for you, which is everyone's right to do so and is purely likely the right decision in your personal circumstances   

- Thinking aloud it seems, S&S have a significant CGT allowance (as P2P has a IT allowance, but not as large), as well as Dividend allowance, that means a very significant amount could be invested outside a tax wrapper like an ISA and still remain tax free.

A significant amount (exact amount depends on the return, but generally 6 figures), which would cover most peoples investments S&S investments. If an investors can use the CGT allowance/Dividend allowance to make their S&S investments tax free, the question then arises would the ISA allowance be best used elsewhere?

For some HNW investors, the choice maybe different if they have S&S investments not covered by the CGT/Dividend allowances. Here the highest returning investments might be better sheltered in an ISA, whcih may be S&S

   
- Additionally the CGT rates are lower than HRT, so even outside this CGT allowance, there may be a tax benefit based on your current tax rates

- Considerations are needed not only on the underlying investment, both the liquidity and diversity, but also the platforms providing them. Here S&S generally are significantly better than the younger P2P platforms in all these aspects. Yes, this is the S&S vs P2P argument, but you have to consider the underlying investment and provider in your choice of ISA

- Levels of returns need consideration, particularly if one is considered significantly higher than the other, the logic would be to shelter the higher returns in an ISA, but this maybe possible under the CGT/Dividend allowances depending on your circumstances