Should I wait for next year's ISA or invest now?
Suppose I have already maxed out my 2017 ISA, and I now have a further £20k that I would like to invest. The financial year will end in 4 months (April 2018), at which point my ISA will be open for a further £20k allowance.
I have two options:
Invest this £20k now into fund X
Wait until April to invest the £20k into fund X wrapped by the ISA
If we assume fund X has an arbitrary fixed interest rate (say 0.5% or 1% per month for easy math), and considering the tax-free advantage of the ISA vs the 4 months headstart of investing now, which option will net me more money?
(1)1 Comments
Sorted by latest first Latest Oldest Best
There's little reason not to invest now, traditionally the more time in the market, the better off you are. When the new tax year starts you can "Bed and ISA" i.e. sell and re-buy within the ISA wrapper. If you're playing it safe you're incredibly unlikely to exceed your capital gains allowance within this short time frame, so no tax anyhow.
Terms of Use Privacy policy Contact About Cancellation policy © freshhoot.com2026 All Rights reserved.