All you need to know about ISAs
What is an ISA?
It is really
a potentially tax efficient investment vehicle and is designed to
encourage you to invest in your future. Any income or growth from an ISA is free from personal liability to UK income and capital gains tax.
Tax treatment depends on your individual circumstances and may be subject to change in the future. Tax rules can also change. Please note we are unable to reclaim the 10% tax credit on UK equity dividends.
The value of your 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 either make regular monthly payments or a single payment; however there are annual limits on the amount you can pay in.
Tax treatment depends on your individual circumstances and may be subject to change in the future. Tax rules can also change. Please note we are unable to reclaim the 10% tax credit on UK equity dividends.
The value of your 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 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).
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?
For the 2008/2009 tax year you can invest up to £7,200 in total. This is your ISA allowance set by the Government (HM Revenue and Customs) each tax year.
- You can invest your entire ISA allowance of £7,200 in a stocks and shares ISA
- or you can invest up to £3,600 in a cash ISA and invest the remainder in a stocks and shares ISA
- 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.
Payments into an ISA are subject to upper limits set out by the Government
(HM Revenue and Customs) each tax year.
Can I invest monthly?
Yes. You
can pay from £50 a month, by Direct Debit, into our stocks and shares ISA.
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?
To find out more about Individual Savings Accounts call us on 08457 678910* and choose option 3.
