Conversation between Ndubuisi 'Andy' Egwim and another speaker explaining the difference between tax avoidance (legal) and tax evasion (illegal), and discussing tax-efficient investing using ISAs/NISAs. They illustrate with an investment example: a £100k gain would incur ~£24,000 tax outside an ISA, while gains/dividends held inside an ISA/NISA pay no capital gains tax.
Questions this video answers
£100,000
£24,000 (speaker said '24, that's 24000 pounds')
ISA (NISA mentioned)
When a politician say we're going to.
Close all the loopholes that people used to avoid tax, many of them haven't.
Really understood.
The tax code. They don't understand that ISA.
Tax avoidance is legal.
Tax evasion. On the other, lying or trying to.
Cheat is actually an issue.
Okay, so basically if we invested, let's say IO, IO looks like it's going.
To be a very good investor.
I invested an IO and I, we invested and we.
Made like 100k from our investment.
We invested 100k each and over five.
Years we did well.
We doubled our investment.
I made 100k.
IO made.
100K, IO needs to pay 24, that's 24000 pounds to the government.
If you have not.
Invested through the.
Nisa, while.
I pay zero, that's capital gains tax.
And any dividend.
That I has been collecting as well, he needs to pay tax on it.
So how to avoid this, obviously is to use your isa, max it out. But that's not the end of it.
Because I know people who want to.
Invest 50k, 100k, 150.
200 isa.
That are not enough.
They are the starting point.
But if you haven't used your isa, what are you doing? You need to use it up first before you go to do something else.
