Hey guys, it's sasha, i get asked a lot of questions by people who are new to investing about the stocks and shares isa. Now i took the nine most popular questions out of these and i'm gon na go and give you the answers. I'm gon na tell you exactly what some of these things mean exactly how some of these things work, so that people can understand stocks and shares isis a little bit better, but just before i dive right in a really brief disclaimer, i am not a financial advisor. I can't provide financial advice to you and if you do need financial advice, please make sure you go and seek the help of a suitably qualified professional.

So question number one: how does the annual allowance work? I often get this question and i'm going to start with it, because all ices, including stocks and shares isis, have a combined 20 000 pound limit, but the people that don't quite understand it often ask the question what if i put in 10 000 pounds and then The value of that investment doubles, for example, to say 20 000 pounds. Does that mean i can't put any more money in well the limit on isis? This is a applicable to all. Different kinds of isis applies to the deposits. Only it doesn't matter how much your money grows.

So in this example, if you're 10 000 pounds grows to 20 000 or even 100 000 pounds in value, you can still go make another 10 000 deposit during the same financial year. For a total of twenty thousand. Remember you can go and deposit up to twenty thousand pounds during any financial year that runs from the sixth of april one year to the fifth of april the following year, and it doesn't matter how much that investment grows the next year. You can go and do exactly the same thing now, which brings us nicely to do.

I pay tax on any amounts over 20 000 pounds. Now most people continue to be a little bit confused by this limit they're going to think that maybe this limit applies to what the tax-free portion is and anything over that you're going to have to begin paying taxes on well, the simple rule is no matter how Much you earn from dividends or how much the growth and value of your portfolio is. You will have to pay no dividend tax. You will have to pay no capital gains tax on the investments made inside inside a stocks and shares isa.

So, however, much you invest per year up to the 20 000 pound limit, it doesn't matter. If it grows to 1 million pounds in value, you will still have to pay hmrc. Absolutely nothing when you decide to cash in the next question is: when can you withdraw the money from stocks and shares isa? Now you can withdraw money from stocks and shares iso whenever you want, but there are a few caveats if you make a deposit and then make a withdrawal from the icer with most providers, you're actually going to be losing that amount of tax-free allowance. So, for example, if you're going to deposit fifteen thousand pounds into a nicer and then withdraw five thousand leaving net ten thousand pounds in that account, you will essentially lose that five thousand pounds, because you'll only be able to make another five thousand pound deposit for a Total of fifteen out of the 20 000 pound allowance you have for that year.

Vanguard and ig are two companies, i think maybe some others do as well, but i know that they offer flexible isis where these rules don't apply and you're allowed to go and make a deposit back up to any amount you withdrawn during the financial year, which is A little extra advantage, although they have some disadvantages for the other versus other providers as well, and one other thing to remember is if you do need to make a withdrawal, you will have to wait two business days from when you actually go and sell your positions To when that money is possible for you to withdraw from your account, because that's how long it takes to actually set all those transactions and even then expect to take a few business days from when you actually process a withdrawal until the money lands in your bank. Account so expect at least a week from the moment, you're trying to begin doing withdrawal until the money is actually available to use, for whichever other purpose question number four. Do you have to file a self-assessment or any kind of reports to hmrc if you're, using a stocks and shares isa, and the answer is no, you do not have to file the self-assessment you don't have to do absolutely any kind of tax reporting to hmrc. If you have all your investments inside the stocks and shares isa, unless there is another reason why you do have to go and do them, there is no obligation to do any kind of calculations.

You don't have to calculate capital gains. You don't have to do anything at all. You get to benefit from all the growth in your value in your portfolio and all the money that you're going to be able to earn without having to do any of the paperwork. That's one massive benefit.

On top of the tax-free benefit as well question number five: how do i get a free share, which is a really good question? I'm really glad you asked, because trading 212 and free trade both offer a free share. If you go and use my link in the description below for signing up to your account, you can get the free share worth up to 200 pounds with free trade or up to 100 pounds trading 212. Although trading 202 right now are not accepting new customers. However, i am currently using the trading one two uh isa and i also think very highly of free trade.

I use their non isa account as well. Remember the free trade isa. If you choose to go for that, one costs three pounds a month, whereas the trading one two one is free, so you can go and check them both out. If you're interested, can you keep cash in the stocks and shares i? So this is a question: i've been getting a little more frequently more recently and, and the answer is yes: when you make a deposit, the money goes into your account and it sits there essentially as cash when it first arrives.

You can then go and take that money and invest it in various stocks and shares etfs whatever it is that you want to buy and at any point in time you can go and sell out of those positions and the money will continue sitting as essentially cash Within your account, it doesn't do anything, it doesn't earn you anything, there's no benefit for it being there, but it does sit there. Although with free trade plus, which is a ten pound a month, account which is really expensive, you do get three percent interest paid on it as well, but um, if you want to, for example, make a deposit at the end of the financial year and you're. Not quite sure what you want to invest in, or you just want to put the money in to make use of the tax advantage, but then want to make decision on where what to invest it. At some point later, you can do that.

The the time limit in terms of the financial year is not on making investments it's on making the deposit into the account. So the date on which you put the money is what counts and what you do with it. After whether you sell whether you buy whether you keep it sitting this cash doing nothing, it doesn't really matter. It's up to you, question number: seven: do i have to pay any other taxes and if so, how do i go and pay them really good question stocks and shares isa means that you don't have to pay any capital gains or uk dividend tax on your investments.

Those are the two big taxes associated with investing, but you still have to pay some other taxes. First, you have to pay the us dividend, withholding tax, which is 15 for uk residents, and that has to be paid to the us inland revenue service on any dividends that you earn from us-based u.s listed companies. Another one is uk stamp duty. Every time you go and buy a large uk company that's listed in the london stock exchange, you will have to go and pay 0.5 percent.

As the uk stand duty for the benefit of being able to purchase those shares, you don't have to pay it. When you sell now, some other european markets also have similar taxes to that stamp duty. Although it is quite rare to actually find companies, they want to invest in the majority. People probably will never actually invest, or only have maybe one investment in companies that are on those markets, so you're unlikely to actually come across that.

But the good news after saying hola is that you actually don't have to do anything all of these. The u.s dividend. Withholding tax the uk stamp duty will be taken from you automatically, either at the point when you're buying the taxes uh sorry buying. The shares, as the case is with uk stamp duty, so it would just be part of the transaction.

It'll just go you'll, never see it. You'll never have to do anything about it. All with the us dividend, withholding tax, it would taken off the dividends paid by u.s companies before the money ever reaches you, you don't have to fill in any paperwork. You don't have to send anything anywhere.

You don't have to do absolutely anything. The money will be paid automatically. You won't ever see it uh. So that's! That's the good bit.

It's very very easy question number eight. Do i need to open a new stocks and shares account every single year? I get asked this one, maybe the most out of all these questions. The answer is no, in fact, most investing companies won't even allow you to go and open more than one account with the same firm. However, you can keep the same stocks and shares iso account for as long as you like, with the same company and every single financial year.

So the moment the sixth of april starts, you can go and make use of the new year's tax, uh tax privileged amount of twenty thousand pounds, so you can go and deposit twenty thousand pounds in one financial year and when the next financial year starts, you can Go deposit another twenty thousand pounds into exactly the same account. You don't have to keep changing them. You don't have to open new ones, however, which brings us to question number nine. You can have more than one stocks and shares account.

So a lot of people kind of get confused by those too. Now technically, there's nothing really in the law, stopping you from opening multiple different stocks and shares accounts in the same financial year. However, most of these companies, they will ask you some questions and they'll run. Some checks, and many of them will actually prevent you from doing it.

Just to save you on the hassle of accidentally opening accounts that you can't then use so in any one financial year you are limited to making deposits to only one stocks and shares isa. So you can't have two different ones, even if you've opened them in separate years and made deposits into both. If you accidentally do that, you will have to contact hmrc, because one of those would be treated as a non-isa account and you'll have to do a lot of uh work to work with hmrc to tell them for them to tell you which one it is, etc. You don't want to ever get into that, so make sure you only ever deposit into one stocks and shares.

I said during the course of a single financial year. However, it is perfectly okay to keep your old stocks and shares isa. If you open a new one and begin depositing into that one, you can continue using your old one. You can continue selling some of your shares buying new ones.

Keeping money is cash. You can do whatever you want with the investments that you've already made. The only rule is, you can't put more money in through deposits, so you can have multiple different stocks and shares isis, you can go, make trades and investment decisions and all of them just make sure that you only limit deposits. That's all i've got for you today.

I hope you guys found this useful. If you have, please make sure you hit the like button so that more people can go and watch this video, so they can learn the answers to these simple questions. If you're interested in more content about personal finance about investing make sure you go and subscribe to this channel, that is exactly what i talk about in every single video. Thank you so much for watching.

I really really appreciate it and, as always i'll see you guys later.