Invest in an ISA
Buy your Equity ISA with 0% initial charge on most top-rated funds.
ISA Eligibility
ISAs (or Individual Savings Accounts) enable you to shelter your investments from income tax and capital gains tax.
An ISA is a tax-efficient way of investing money, without you having to pay further tax on any of the profit made, withdrawals or income that you take. The account itself is like a basket in which you can put different types of investment.
Anyone over the age of 18 who is resident and ordinarily resident in the UK for tax purposes, can invest in an ISA Account.
What types of ISA are there?
There are two types of ISA:
- Stocks and Shares ISA also referred to as an Equity ISA
- Cash ISA
How much can I invest in an ISA Account for tax year 2010/11?
You can make lump sum investments provided that you do not exceed the maximum allowable amount.
The overall subscription limit for an ISA is £10,200, of which you can invest up to £5,100 into a Cash ISA, and the balance or full amount into a Stocks and Shares ISA.
| Cash ISA component | Stocks and Shares ISA component | |
| 2010/11 | Up to £5,100 | Balance up to £10,200 |
You can only subscribe into one Cash ISA or a combination of a Cash/Stocks and Shares ISA in the same tax year.
ISA/PEP Transfers
Do you have existing ISA’s? Why not transfer them so that you can manage your investments under one roof? By transferring your existing holdings you will retain the tax efficient status of your investment.
Download our ISA/PEPs Transfer Form
Tax Treatment of ISAs
Stocks and shares ISAs
Investing into an ISA is very tax efficient. No matter what type of ISA you choose to invest in or what your current income tax position is, you will benefit from the advantageous tax treatment of an ISA.
The stocks and shares component of an ISA, is free of capital gains and dividends are free of UK income tax. However, foreign withholding taxes may apply.
Until 5th April 2004 Stocks and Shares ISAs could reclaim 10% tax credit on UK dividends. However interest on bond investments is treated as tax-free.
Unlike a Cash ISA, the idea of a Stocks and Shares ISA is to invest in equities and not cash. Investors can invest in cash pending future investment. Any interest will be subject to a 20% tax charge.
Cash ISAs
The interest earned on a Cash ISA is tax-free.
Current tax levels, subscription limits and reliefs may change. Depending on individual circumstances, this may affect investment returns.