any isa stocks and shares experts

http://forums.moneysavingexpert.com/forumdisplay.php?f=17


ask question here,alot of very knowledgable people

yes you can take the dividends and they are tax free

Dividends on shares are NOT tax free, neither in an ISA OR in a pension.

http://www.telegraph.co.uk/news/uknews/1531448/Browns-raid-on-pensions-costs-Britain-100-billion.html

The dividends on retail bonds are tax free in ISAa and pensions. However, these investments are not protected by the 85k guarantee should the debtor go under.

so if you intend to use dividends as part of your pension plans etc,theres no point in having them in an isa, YES/NO

the only benefit is avoiding capital gains if you sell them ,which you wont be if your living of the divs, YES/NO/

according to sundays mail you pay 10% on dividends kept in an isa wrapper at source

There is a point of investing in shares in an ISA or pension. Companies like GSK, National Grid and Centrica have a good record of decent dividend payment and are unlikely to ever go out of business. They are relatively secure investments. (You are also covered by the 85K guarantee) You should not have a significant percentage of your money invested in any one thing. i.e. No more than 5-10%

The non taxation of dividends of retail bonds in ISAs or pensions is counteracted by the risk to your investment. i.e. If the debtor goes out of business, you can lose part or all of your investment. Now, some retail bonds carry more risk than others and hence pay a higher dividend for that risk. Tesco and National grid have issued retail bonds. I think the Tesco one paid about 5% and the national grid one was linked to inflation. A high percentage of the more recently issued retail bonds come from more risky financial based companies, often carrying relatively high debt. IN the list of creditors, the retail bond holder is fairly high in the queue, certainly in front of ordinary share holders.

You are also covered by the 85K guarantee)

What for shares!

I'd check that out.

The non taxation of dividends of retail bonds in ISAs or pensions

I'd check that out as well.  I thought they were taxed before you get them that's certainly the case with pensions.

Hang on. I didn't see the post before your last one before I wrote that about dividends.

If the interest paid on retail bonds is tax free in an ISA then they are even more attractive.

I didn't think the dividends on corporate bonds were tax free in a ISA. I thought they stopped the tax at source.

Thanks Dr Crippen. Seems I was not quite right with regard shares held in a nominee account.

The official position on nominees

Here is what the Financial Services Compensation Scheme (FSCS) has to say about investments held by nominee companies:

"Nominee companies are covered if an authorised investment firm has accepted responsibility for their losses. If not, we will pay compensation only if the nominee firm is authorised by the Financial Services Authority. You can check this be using the FSA's Firm Check service at www.fsa.gov.uk or by phoning the FSA Consumer helpline on 0845 606 1234."

The FSCS covers deposits (which it defines as "money placed in a bank or similar institution to earn interest of for safe-keeping") up to £50,000 per person. It also covers investments, which it defines as "a financial product in which money can be invested to earn interest or profit (although the value of investments can go down as well as up)" up to £48,000 per person (100 per cent of the first £30,000 and 90 per cent of the next £20,000). The investment compensation is mainly intended to pay out if consumers suffer detriment as a result of bad financial advice. However, if an authorised firm is declared in default and you lose money as a result, this could be a useful safeguard.

For investors who hold cash in their shares Isa, the FSCS says that cash will be treated as if it were held in a deposit account, and that the wrapper is not important. Francesca Pattison of the FSCS says: "Any cash held as part of such an ISA would be covered by the deposit limit of £50,000, unless the money was only being held temporarily pending investment into an investment product. In that situation, the investment limit of £48,000 would apply." However, she added that, in practice, any cash held in a shares Isa at the time of the bank going bust would simply be made under the deposit scheme (£50,000 limit) while the portion invested in shares would be claimed under the investment scheme (£48,000 limit).

But the bottom line is that if you are holding more than £50,000 on deposit with a stockbroker, you are not covered for the surplus if the organisation (bank or broker) with which this money is deposited goes bust.

http://www.investorschronicle.co.uk/2011/12/06/your-money/how-safe-is-your-stockbroker-EQxef85z3D3niuRMcQy2uK/article.html

Retail bonds add to Isa options
As bonds generally pay “coupons” gross, an Isa will save you more on the income of a bond than it will on share dividends, where a 10 per cent tax credit is already deducted at source.
http://www.ft.com/cms/s/0/65bea502-7d0f-11e2-8bd7-00144feabdc0.html#axzz2piqz8wA4