- Beginners’ guide to investments
- Quick lump sum calculator
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In detail
What is an Investment ISA?
It is a potentially tax efficient investment vehicle and is designed to encourage you to invest for your future. Any income or growth from an ISA is free from personal liability to UK income and capital gains tax.
The benefits of the tax advantages depend on your personal circumstances. Tax rules can change. Please note we are unable to reclaim the 10% tax credit on UK equity dividends.
The value of your Investment ISA, and any income from it, is not guaranteed and can go up or down depending on performance (and currency exchange rate changes where a fund invests overseas). You may not get back the original amount you invested.
You can normally either make regular monthly payments or a single payment; however there are annual limits on the amount you can pay in.
What kinds of ISAs are there?
There are two types of ISA: stocks and shares, and cash. Stocks & shares ISAs are generally available to anyone who is 18 years of age or older and ordinarily resident in the United Kingdom for tax purposes.
You should be prepared to leave money invested in the stocks and shares ISA for the medium to long term (at least 5 to 10 years).
How much can I invest?
Your ISA allowance set by the Government (HM Revenue & Customs) each tax year. The amount you can invest depends on your age.
- From 6 October 2009 if you are 50 or over, or reach 50 during the 2009/10 tax year, you can invest £10,200 in total. You can invest up to £5,100 of that in a Cash ISA and the remainder in a stocks and shares ISA, or the whole amount in a stocks and shares ISA.
- If you are under 50 you can invest up to £7,200 in total for the 2009/10 tax year. You can invest up to £3,600 of that in a Cash ISA and the remainder in a stocks and shares ISA, or the whole amount in a stocks and shares ISA.
- From 6 April 2010 the new ISA limit of £10,200 applies to everyone, regardless of age.
- You can have a cash ISA with one provider and a stocks and shares ISA with the same, or a different, provider.
- Scottish Widows is a stocks and shares ISA provider.
- Cash ISAs are usually provided by banks — such as Scottish Widows Bank or Lloyds TSB — or building societies.
Can I invest monthly?
Yes, usually. You can pay from £50 a month, by Direct Debit, into most of our stocks and shares ISA funds.
What is the minimum investment?
The minimum single payment you can invest is £1,000 for each application (or £500 per fund if you choose to invest in more than one fund). The minimum investment for monthly payments is £10 per fund subject to a minimum application of £50.
Have we answered all your questions?
If you have more questions about ISAs, our FAQs may well answer them.
If not, please contact us.
