Is it crucial to have a 'tax wrapper' for fund investing?

Hi! I've just started dabbling in a bit of fund investing with £500 here and there using the Halifax shares site. Conscious that there's no 'tax wrapper' around this, but does that matter? I've already got stocks ISA with Nutmeg which has more in it than I've invested into the Halifax, but really wanted to be able to choose some other funds to invest which you can't really do with Nutmeg. I'll continue to put into the ISA monthly and I'd like to continue to grow my own fund portfolio, but is that daft? Should I be moving it all to a platform where the ISA option provides that flexibility (do Hargreaves Lansdown do this?) or is it ok as is since it provides some diversification? Thank you.

Hi Gill. The benefit of using an ISA wrapper is that the growth in your investments will not be subject to capital gains tax and dividends or interest will not be subject to income tax. Whether you need the wrapper will depend on your tax position. Also, £500 is probably unlikely to generate huge returns or income, so you may feel that you are happy to pay any tax due. Each individual has a Capital Gains Tax allowance and so as long as the growth in your Halifax investments plus any you have elsewhere don't exceed that, you won't have tax to pay. I hope that helps. Tamsin