Stocks & Shares ISA Guide for Beginners - (Updated for 2024)

[@TrobridgeFendlason]

Great channel!! Always learn from you. Reminds me how I made my first couple millions, I put a lump sum in stocks & with the help of an amazing FA who trades for me.

[@DeusZechiel]

Nice. That's awesome!!! who's your FM & how can I get in touch to work with him?

[@TrobridgeFendlason]

@@DeusZechiel 👍Thank you. Emmennet Jaccque Barrett is my FM, a friend in NY referred her. You can research her.

[@DrJohnners]

Great content. Thanks to the likes of you, Ramin, James and Dom I've moved my work pension into a global index fund, opened a SS ISA and am maxing out my AVCs to fill the 60k allowance. Kudos to the lot of you for making this knowledge available to the masses!

[@danielcroston1592]

What global index fund do you use? :)

[@DrJohnners]

@@danielcroston1592 It's one that's inbuilt into my work pension portal so I don't have the choice of the usual ETFs. This one simply mirrors the FTSE global Index.

[@UK.TA.]

I always learn something valuable with this channel Thanks Toby!

[@TobyNewbatt]

My pleasure!

[@lifeisagame2023]

Toby u are a legend. Sadly I can't get many involved in investing. They either think it's all a scam, are scared, or just don't want to pay themselves first

[@unbearifiedbear1885]

I was the same though.. didn't listen about premium bonds, about buying silver about ISAs, locked savings, buying the dip on BC etc etc It isn't relevant til it's relevant, which is usually 10yrs late, unfortunately

[@TobyNewbatt]

1 step at a time, we've got a long way to go and I'm here for the long run :)

[@adrianl5899]

It's sadly very common, as is thinking pensions are scams or that a house is a pension etc.

[@sethanith3181]

I constantly get told investing is exactly the same as gambling at a bookies.

[@lifeisagame2023]

They don't want to believe or take the leap of faith and time it takes to learn good investment, that's on them. Their loss, our gain.

[@Ullashpodder]

Very informative

[@Kiara-j9y]

Hi Toby, great video as always. I’ve been following you for over a year now since I was studying A Level and am now in university! I wanted to ask could you please make a video on the best long term funds especially mutual funds to invest (ofc there’s the common ones S&P 500 and FTSE 100) but some upcoming less popular ones that would eventually perform just as strongly. Thank you !

[@dynasushi840]

I normally go with invest engine but the 200 cashback from trading 212 tempted me. Now just waiting for next year for the allowance to reset to go back to invest engine 😊

[@obiiwumene638]

Incredible insight on investments thank you and may God bless you for your service.

[@musammils]

Simple and concise information. Thanks.. Keep doing pls

[@Mrdjrehan1]

I dont care about investing as much as want to hear Toby talk..always a pleasure listening to you. Great content and delivery.

[@TobyNewbatt]

always grateful for the support mate :)

[@Mrdjrehan1]

@@TobyNewbatt just saw you and I both worked for Softcat...I was there from 2016-2021 :)

[@DeusZechiel]

A very honest & helpful posts. Thanks a lot 👍

[@Simon_118]

Thanks Toby for all your useful videos! I have opened a s&s isa with t212 this tax year and used your code so hope you get a good free share! 😂

[@TobyNewbatt]

Thank you :)

[@valerienewbatt9678]

Great content Toby as always.

[@CHH3.]

This is great, thank you!

[@TrobridgeFendlason]

Very nice content

[@UKvideos2009]

Another really informative and clear video, Toby! - Question, I just opened my first S&S ISA with T212 and starting on the FTSE All World ETF.. Would adding S&P 500 be completely pointless because of the overlap in the stocks? or is this still diversification of sorts.

[@adrianl5899]

Being covered by the global index, adding S&P would be more duplication than diversification. Diversification could be to add a small caps fund if missing small caps or to add something non-equity, such as government bonds.

[@UKvideos2009]

@@adrianl5899 Thanks

[@ramzitoutah6757]

If I have two stocks & shares ISA’s (that were opened in separate tax years) I can now invest into both with a £20k maximum between them this tax year, whereas in the previous tax year I could’ve only invested into one of these ISA’s. Am I correct in saying this ??

[@timothycook5880]

Thanks for your honest and helpful posts

[@TobyNewbatt]

Thanks for the support :)

[@adrianl5899]

You know your channel is doing well when the bots take over the comments, Toby!

[@TobyNewbatt]

It’s a never ending struggle I normally try and block their keywords once I find them and block them from the channel! 🤦‍♀️

[@hopes2bfree]

I'm an absolute beginner in S&S ISA. I want to start investing although I have a low income and one Natwest Account. Should I open a S&S ISA with my bank or with an independent platform?

[@TobyNewbatt]

You can open an ISA with whoever you want. If you have a smaller amount if money keep your costs as low as possible! I have done a guide on the best ISA accounts you might like

[@MrLEEMOD]

@@TobyNewbattwhere is the guide please?

[@SamWize.]

Are bank stocks and shares ISA's any good like Halifax or barclays?

[@warwickwolf3999]

Are company shares transferred from a share save scheme into a S&S ISA still live shares owned by me ? ie do I still get dividends and do they rise and fall with the market? and do I sell them in the normal way or am I transferring the cash value of them into the ISA and then investing into some sort of managed fund? any help would be great 👍🏻

[@tenzintsewang6279]

Hi, thank you for the informative video. One question please, u said life time ISA 4000 pound limit followed by one can open one of these accounts. What does it mean, in total we can contribute 20,000 pounds in one year right ?

[@TobyNewbatt]

In total your ISA accounts have a £20,000 limit per tax year that you can put in. However as well as this…the lifetime isa also has a further restriction that you can put in a maximum of £4,000 per tax year. Every other isa type you can put in whatever you like (but the total isa allowance of £20,000 remains) Take your time in understanding this it’s easy to get mixed up

[@LScouser8]

I’m British but also hold a US passport. Barclays have prevented me from opening one. I bet this is because of the global taxation Uncle Sam has in play.

[@Pidamoussouma]

awesome

[@cinyungable]

Great and clear content as always. Can I ask when my cash ISA of the previous tax year matures, and I transfer part of it to a new S&S ISA, does it count towards the limit of £20000?

[@TobyNewbatt]

Please check with the new provider if they will accept a transfer from the cash ISA. In theory you can transfer different ISA types between each other. Any old money will not count toward current tax years allowances - but you should check with the new provider :) Source: www.unbiased.co.uk/discover/personal-finance/savings-investing/how-do-i-transfer-an-isa#:~:text=Different%20types%20of%20ISA%20can,or%20part%20of%20your%20savings.

[@vIMONST3RIv]

Which app do you do this on?

[@vectormodz6863]

Is it worth getting into this via my bank? I’m with Lloyds, please advice if you can man thank you

[@TobyNewbatt]

I did a good video that reviews the best stocks and shares ISA platforms - give that a watch it might be useful. My personal view is that you can do much better than the banks as they often have less choice and higher fees - something worth doing your research on :)

[@jazminpechardo7430]

Hi Toby, is the limit 20,000 per S&S ISA or across all S&S ISAs in the context of the current rules? Thanks in advance

[@TobyNewbatt]

the £20,000 limit is across ALL of your ISA accounts in TOTAL per tax year. For example: You could do the following: £4,000 - Cash ISA £10,000 - Stocks & Shares ISA account 1 £2,000 - Stocks & Shares ISA account 2 £4,000 - Lifetime ISA Total would be £20,000 and that's all you can put in until the new financial year starts. I hope that helps. All the rules are on the gov website under ISA rules.

[@mookett]

Toby can you recomend a global index fund please no come back on you or owt i just need a few recomendations please thanks

[@larsenb4803]

Vanguard Developed World, All World or Global All Cap. Depends on your liking for emerging markets and your age.

[@mookett]

@@larsenb4803 Thanks ill have a look age 53 its for retirement

[@shimsteriom4191]

I can't benefit from ISA's... why am I even watching this video. 🤔 Because the content is great and there might be something not specifically related to ISA's that I can benefit from knowing. 😁

[@TobyNewbatt]

Now that’s dedication 😂. Appreciate the support buddy. We’ll start you an ISA if someone’s partner wants to lend their allowance

[@dazhibernian]

What happens if say i invest £19k into whatever stock & its value rises by £2k within a year making my portfolio now worth £21k?

[@TobyNewbatt]

You now have £21k well done - nothing happens. The limit is what you can PUT IN not what your investments can rise to. You can put in £20k and make £1m and there’s no tax to pay. The only limit is the £20k of new money

[@dazhibernian]

Nice, thanks for the quick reply. Liked & subbed 👍

[@danielcroston1592]

Please help! Should I invest in a fund or a EFT? With the latter can’t you only buy shares as a whole? I.e if price is £70 and you invest £100 per month don’t you have £30 just sitting there until next month isn’t that inefficient?

[@TobyNewbatt]

So yes you are right Daniel, a mutual fund allows investors to invest whatever they have i.e. £100 whereas an ETF has to be bought in full shares. HOWEVER - here's an idea. Newer platforms that allow fractional shares get around this problem so you can invest whatever you have. I use both Trading 212 and InvestEngine both inside ISA accounts to get around this issue. I hope that helps as an idea. As always DYOR and find what works for you :)

[@danielcroston1592]

@@TobyNewbatt thank you so much! Does vanguard offer fractional shares on its EFTs?

[@LawrenceTimme]

What happens if you put more than £20,000 in one year? Hmrc send the boiz round?

[@adrianhazzard6665]

HMRC will adjust your tax code I assume.

[@eddymaddix1786]

In a sense, Yes! HMRC will find out as all ISA providers report to them. The ISA that took you over the limit will have to be "repaired" i.e. reversed as if it had not happened. This will mean interest will become income and taxable, as will capital gains and dividends.

[@10randhawas]

Just to clarify, so if we also use a lifetime ISA and max it out to the £4000. Does that mean we have £16,000 left to invest in the stocks and shares ISA? Or are they separated?

[@TobyNewbatt]

Correct. You would have £16k left to use across whatever you wanted like a stocks and share isa or a cash isa 👍.

[@10randhawas]

​@@TobyNewbatt Thanks for clarifying!

[@punkanaissance]

👍🏼

[@SamLawther]

Great video. I've recently moved away from a standard eToro account and opened a stocks and shares ISA with trading 212. I'm wondering are you able to constantly buy and sell shares within the 'ISA' umbrella i.e. buy £1000 worth of Google, sell it all, buy £1000 worth of Amazon... etc. Does this eat up your 20k allowance or is strictly for withdrawals only? Also, big hypothetical question... is there no limit to your profit, for example if I have £300,000 within an ISA, invested in VUSA say, returning £30k a year, can I just withdraw my interest and never pay tax? Any help appreciated! Thanks!

[@TobyNewbatt]

No limits to your profits in an ISA. The only limit is the amount you put in that’s all . So £20k a year is what you can put in maximum each tax year You can buy and sell all you like 👍

[@brettdown9155]

Are fractional shares allowed in a stocks and shares isa in the uk? Some places say they are and some say they arent.

[@TobyNewbatt]

Yes they are now - this was amended in the Autumn statement and came into force in April 2024 this new tax year.

[@brettdown9155]

@@TobyNewbatt Thank you! I've been wanting to get into this but wasn't sure what to do due to UK laws.

[@brucie239]

Hi, do i still pay stamp duty if i buy shares with a ISA account?

[@adrianl5899]

Yes

[@jtlondon81]

If i day trade options can this be via an ISA? Thanks

[@TobyNewbatt]

No :)

[@jtlondon81]

@@TobyNewbatt ok thank you Toby

[@georgevideos1849]

What is a IFA ISA?

[@TobyNewbatt]

Innovative finance isa - I just shortened it for the video text 👍

[@cecilianjire2365]

So to get this right. I can now open invest engine and buy ETF's and Vanguard buy some stocks there too as long both remain under 20k. But inside then I can choose to invest in however many funds or ETF's I want?

[@iPawk]

Correct, but it’s 20k overall deposits, so you could e.g. pay 10k into each one this year, for a total of 20k. Your balance can rise over 20k with the value of your stocks, it’s just the amount you pay in that counts to the limit.

[@antofempire]

One thing that confused me (which I guess doesn't matter now cause the rules have change) is that with the old rules, were you not allowed to OPEN more than one of the same of ISA or were you not allowed to PAY into the more than one type of ISA? Because from how I read it, you could pay into one ISA but still do a full transfer to another same type of ISA or a partial transfer of previous tax year. Or have I misunderstood the fine print?

[@TobyNewbatt]

so two points :) 1. the rules were all about paying NEW MONEY in per tax year you are correct, the act of opening one was not relevant 2. Money from previous tax years never counted as new money - if you wanted to open a new ISA and transfer money from a previous tax year thats fine as this is not new money. This rule has not changed :) Hope that helps!

[@antofempire]

Thanks@@TobyNewbatt :) so I guess technically in the old rules you still didn't have to just stick with one type of ISA, as long as you are doing a full transfer with the ISA transfer process you could technically hop onto as many same type of ISA as you like, as long as you always pay into the same one and then transfer out in the same tax year

[@TobyNewbatt]

@@antofempire it was all about NEW money and opening one new account per tax year with that new money. But the old money could do what it liked. You also could not transfer NEW money around in the same tax year - now you can. :) All very confusing for beginners!

[@antofempire]

@@TobyNewbatt thanks for that. It was very confusing and I am so glad that they have changed the rules. Also thank you for all your great contents. :)

[@paulevans2246]

👍

[@kingarthur7250]

Can l have more than one stocks and shares isa now?

[@TobyNewbatt]

Yes :) - from April this year the rules changed.!!

[@kingarthur7250]

@TobyNewbatt thanks..got to bit where u answered 🤔. Goid video. Thanks.

[@letsbye]

Does this mean. I cannot have a cash isa for 20k and stocks and shares isa for 20k within the same tax year is it...?

[@TobyNewbatt]

Correct - you cannot put in £40k in the same tax year if you did £20k cash ISA and a £20k S&S ISA. So in your example you would have to choose one or the other or maybe £10k in a cash ISA and £10k in a S&S ISA and that is your limit until the next tax year. You can transfer old ISAs though thats fine they do not count as new money.

[@letsbye]

@@TobyNewbatt thankyou. Such a bummer, when people like me are just starting to get our head around.

[@TobyNewbatt]

@@letsbye on a positive note you're doing very well if you can max out your allowances! Another option to consider would be SIPP contributions or even just a general investing account but that would be liable to tax.

[@TheBigShort11]

Keep destroying the price discovery with ETFs

[@TobyNewbatt]

It's funny as this argument was made more than 4 decades ago :) Passive investing only works with an active market. There will always be a huge active market as the stakes are so high and rewards are there. There's also plenty of grifters too :)