Skip to main content
  • Home
  • Our Firm
    • About Us
    • Our Team
    • How we work
    • How we are paid
  • Services
    • Wealth Management

      Wealth, just like your health, must be carefully preserved. Your assets need to be protected against the potential threats of erosion by taxation, the effects of inflation and investment risks. Whatever your level of wealth, there is nothing wrong in making the decision to prepare a risk aversion strategy. Risk aversion is a reasonable and prudent strategy for anyone who is sure that they already have ample to provide for themselves and their family into the future.

      Read More
    • Business Insurance

      All businesses are exposed to risks in their day-to-day operations. Without business insurance cover to provide protection against some of these risks, businesses would find it difficult to operate efficiently and profitably.

      Read More
    • Equity Release

      Equity release is typically available to people who are over the age of 55 and have their own home with a significant amount of equity, but don’t have enough money or income for their needs. By releasing equity in the form of a lifetime mortgage or home reversion plan, it enables the individual(s) to remain in their home and raise money for things such as...

      Read More
    • Financial Planning

      Professional Financial Planning is the process which aims to help you realise your ambitions - whatever they may be. As professional financial advisers we can help you make informed decisions about your financial future, short, medium and long term.

      Read More
    • Health Insurance

      Health Insurance is probably one of the most important types of insurance you can own. Without it, an illness or accident can have serious long-term financial implications for you and your family.

      Read More
    • Life Assurance

      The main purpose of Life Assurance is to provide money for those people who may depend on you financially, in the event that something should happen to you. These people could include family members or business partners.

      Read More
    • Mortgages

      Mortgages are loans which are intended to help buyers purchase residential and commercial property. When an individual takes out a loan, the lender charges interest: the same is true of a mortgage. A mortgage is a ‘secured’ loan, which means that the loan is secured against the value of the property being purchased until the mortgage is paid off.

      Read More
    • Pensions

      When you retire you still need food and shelter as an absolute minimum, but of course you will want to maintain the lifestyle to which you have become accustomed, so unless you can guarantee a large inheritance or windfall, then you need to provide yourself with a secure income for the rest of your life.

      Read More
    • Savings & Investments

      It’s less risky than investing, but it offers limited growth. The most you'll earn on the money you save is the interest added. Saving is perfect for people who don’t want to take any risks with their money, and most savings accounts have easy access or are for a fixed term.

      Read More
    • Taxation

      Taxation can be very complicated and the rules, reliefs and allowances often change, so it is worth obtaining a clear grasp of how these taxes work by discussing with a professional adviser the most efficient way to arrange your finances.

      Read More
  • Data Protection
  • Policies
    • Privacy Policy
    • Cookie Policy
    • TCF Policy
  • Enquiry Forms
    • General Enquiry
  • Research
    • Research
    • Market Data
  • Contact Us
Home
  • Home
  • Our Firm
    • About Us
    • Our Team
    • How we work
    • How we are paid
  • Services
    • Wealth Management
    • Business Insurance
    • Equity Release
    • Financial Planning
    • Health Insurance
    • Life Assurance
    • Mortgages
    • Pensions
    • Savings & Investments
    • Taxation
  • Data Protection
  • Policies
    • Privacy Policy
    • Cookie Policy
    • TCF Policy
  • Enquiry Forms
    • General Enquiry
  • Research
    • Research
    • Market Data
  • Contact Us

breadcrumb

Home    ISAs

Related Topics

  • Introduction to Savings & Investments
  • Unit Trusts
  • Offshore Collectives
  • OEICs
  • National Savings Products
  • Junior ISAs
  • Investment Trusts
  • Fixed Interest Investments
  • Equities
  • Collectives
  • Capital Investment Bonds
  • With-profits

ISAs

Individual Savings Account (ISA)

ISAs represent a tax-efficient container into which to place cash savings and investments in equities, bonds and collectives.

Introduced in 1999 as a replacement for PEPs and TESSAs, an ISA is available to all UK resident individuals over the age of 16 for cash ISAs & over the age of 18 for stocks and shares ISAs. Designed to encourage new saving they are attractive to investors seeking a tax-efficient investment vehicle with the potential for higher returns. There is usually a low level of minimum subscription and no minimum period of investment.

An ISA enables you to accumulate savings in a tax efficient manner as all gains are free from tax, making them particularly attractive to higher rate taxpayers.

An ISA can contain cash deposits, investments in equities, bonds and collectives.

You can choose to pay in one of the following:

  • £20,000 to a cash ISA and nothing to a stocks & shares ISA.
  • £20,000 to a stocks and shares ISA and nothing to a cash ISA.
  • A combination of amounts between a cash and a stocks & shares ISA, up to the overall annual limit of £20,000.

You can only open one cash ISA and one stocks and shares ISA to put new money into each tax year. But you can also open other ISAs to transfer old ISAs into.

For UK equities, you are deemed to pay 10% dividend tax credit in stocks and shares ISAs which cannot be claimed back.

Withdrawals from an ISA can be made at any time without loss of tax relief but it is only possible to hold one ISA per tax year, so if an ISA is closed within the same tax year that it was opened, another one cannot be started until the next tax year.

ISAs can be transferred from one provider to another, as long as the new provider accepts transfers. This is often done with a cash ISA after it has been held for a year as previously attractive interest rates drop dramatically when short-term bonuses and fixed terms come to an end. The transfer is initiated through the new, receiving, provider who will require you to supply details of the original account and will manage the whole transfer process. Transfers should not be done manually by withdrawing the investment, closing the account, and re-investing it in the new account, as this removes the tax-free interest status of your investment.

The current year's allowance is unaffected by anything transferred from previous years so you can transfer previous investment to a new ISA and open a second ISA for new contributions if you wish, as long as you don't contribute to both.

INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM TAXATION, ARE SUBJECT TO CHANGE.

THE VALUE OF INVESTMENTS AND THE INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.

Individual Savings Account (ISA)

ISAs represent a tax-efficient container into which to place cash savings and investments in equities, bonds and collectives.

Introduced in 1999 as a replacement for PEPs and TESSAs, an ISA is available to all UK resident individuals over the age of 16 for cash ISAs & over the age of 18 for stocks and shares ISAs. Designed to encourage new saving they are attractive to investors seeking a tax-efficient investment vehicle with the potential for higher returns. There is usually a low level of minimum subscription and no minimum period of investment.

An ISA enables you to accumulate savings in a tax efficient manner as all gains are free from tax, making them particularly attractive to higher rate taxpayers.

An ISA can contain cash deposits, investments in equities, bonds and collectives.

You can choose to pay in one of the following:

  • £20,000 to a cash ISA and nothing to a stocks & shares ISA.
  • £20,000 to a stocks and shares ISA and nothing to a cash ISA.
  • A combination of amounts between a cash and a stocks & shares ISA, up to the overall annual limit of £20,000.

You can only open one cash ISA and one stocks and shares ISA to put new money into each tax year. But you can also open other ISAs to transfer old ISAs into.

For UK equities, you are deemed to pay 10% dividend tax credit in stocks and shares ISAs which cannot be claimed back.

Withdrawals from an ISA can be made at any time without loss of tax relief but it is only possible to hold one ISA per tax year, so if an ISA is closed within the same tax year that it was opened, another one cannot be started until the next tax year.

ISAs can be transferred from one provider to another, as long as the new provider accepts transfers. This is often done with a cash ISA after it has been held for a year as previously attractive interest rates drop dramatically when short-term bonuses and fixed terms come to an end. The transfer is initiated through the new, receiving, provider who will require you to supply details of the original account and will manage the whole transfer process. Transfers should not be done manually by withdrawing the investment, closing the account, and re-investing it in the new account, as this removes the tax-free interest status of your investment.

The current year's allowance is unaffected by anything transferred from previous years so you can transfer previous investment to a new ISA and open a second ISA for new contributions if you wish, as long as you don't contribute to both.

INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM TAXATION, ARE SUBJECT TO CHANGE.

THE VALUE OF INVESTMENTS AND THE INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.

Read less

Call us now

01628 487 755

Send us

An Enquiry

Registered Office: Regency House, Mere Park, Dedmere Road, Marlow, Buckinghamshire. SL7 1FJ
Registered in: England

RBS Associates is authorised and regulated by the Financial Conduct Authority.

RBS Associates is entered on the Financial Services Register (www.fca.org.uk/register) under reference 457658.

The Financial Conduct Authority does not regulate all forms of the products or services we provide.

The information contained within this site is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK only.

© Copyright 2019 - Adviser Pro - All Rights Reserved
Design and Developed by Adviser Pro © 2019