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So you'd have to better that to justify any point.
Short term with small beer, yeah. This was £100k. On a good year, £100k in a S&S isa will return as much as your tax free allowance, or more if you've really done well. Which is great, if you've already used your tax free allowance. Nice problem to have...
(granted you'd need to go back in time five years and start investing it then...)
Long term with large amounts of money (a huge nest egg if you will, say £200k +) here are the boring reasons why it's a better bet in some cases than a SIPP or whatever
- no tax on it when you withdraw from it
- less law around it that dickheads can fiddle with and ruin it
- can access money any time
- not forced in to doing something with the money, i.e. annuity.
- no tax on it when you withdraw from it
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Main difference is really the ease of access. With the £12k pa you may need to time selling stuff which isn't always an option.
Also, and this is a bit of a crystal ball guess, there have been lots of noises around getting rid of CGT and merging with income tax, etc. It seems this is probably a greater risk than ISA allowances going.
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Howard
aggi
@wildwest
Stocks and shares isa is almost pointless unless you intend to rack up huge nestegg.
Dividends are £2000 tax free and capital gains £12300 outside of the isa per annum. So you'd have to better that to justify any point.
That said its 20000pa limit and rules are likely to change for the worse very soon.
Even LISA with the 1k bonus on 4k investment is no better then a pension contribution. Would be useful for a first house depostit though.