Stocks and Shares ISAs?
A Stocks and Shares ISA is a tax-efficient investment account that allows you to hold various types of investments, including individual company shares, bonds, and funds. Unlike a Cash ISA, which holds only cash deposits, a Stocks and Shares ISA provides the potential for higher returns by investing in the stock market.
However, it also carries more risk as the value of investments can fluctuate.
Rachel Buscall CEO New Captial Link
When might a Stocks and Shares ISA be for you? A Stocks and Shares ISA may be suitable for you if you are not looking for immediate access to your money, you are prepared to keep your money invested for several years, you have not used up your total ISA allowance for the current tax year, and you are comfortable with the risk that the value of your investments can go up and down, and you might get back less than you initially invested.
What investments are held in Stocks and Shares ISAs? Stocks and Shares ISAs can hold a wide range of investment products, including unit trusts, investment trusts, exchange-traded funds (ETFs), individual stocks and shares, corporate and government bonds, and Open-Ended Investment Companies (OEICs).
How Stocks and Shares ISAs work?
You can pay a total of £20,000 into an ISA in the 2024/25 tax year. You can divide your ISA allowance across different types of ISAs (cash, stocks and shares, innovative finance, or lifetime), but the maximum contribution to a Lifetime ISA is £4,000. Any unused allowance cannot be carried over to the following tax year. You can make lump sum investments, regular contributions, or ad hoc contributions throughout the tax year. Any increase in the value of your investments within the Stocks and Shares ISA is free of Capital Gains Tax. Most income from your Stocks and Shares ISA is tax-free.
Transferring ISAs
If you want to switch your Cash ISA to a Stocks and Shares ISA while keeping the money tax-free, you will need to transfer it. All ISA providers must allow transfers out, but they don’t have to allow transfers in. You can transfer money from a Cash ISA to a Stocks and Shares ISA, and vice versa. You can choose how much you want to transfer – you don’t have to transfer the entire amount.
Access to your money
You can sell the assets held in your Stocks and Shares ISA at any time, but there’s no minimum holding period. If you have cash in your ISA, you can only reinvest it into another ISA, up to your available ISA allowance.
ISA rules on deceased spouse ISA transfers?
If your spouse or civil partner passes away, you can inherit their ISA. You will receive an additional ISA allowance equal to the value of the deceased’s ISA savings at the time of death.
How Have ISA Rates Changed?
Source: Statista
Charges on Stocks and Shares ISAs?
It’s important to check the charges associated with your Stocks and Shares ISA, which may include account or platform fees, fund management charges, buying and selling charges, and transfer-out fees.
How safe are your savings??
If a fund manager covered by the Financial Services Compensation Scheme (FSCS) goes bust and owes you money, you can claim compensation of up to £85,000 per person, per institution. However, you won’t receive compensation just because the value of your investments falls.
How to buy a Stocks and Shares ISA?
You can purchase a Stocks and Shares ISA directly from an ISA provider, a fund manager, discount brokers, fund supermarkets, banks, a regulated financial adviser or planner, or online share accounts or stockbrokers.
Tax on Stocks and Shares ISAs?
Investments that pay interest or rental income within an ISA provide 100% tax-free income. Everyone gets a £500 tax-free Dividend Allowance, on top of their personal allowance. Dividends received on shares within an ISA are tax-free and won’t impact your Dividend Allowance. Any profit from selling investments within your Stocks and Shares ISA is free of Capital Gains Tax. Losses made on investments within your Stocks and Shares ISA cannot be used to offset capital gains on other investments.
Can I have a joint Stocks and Shares ISA? No, ISAs are individual accounts, and joint accounts are not permitted. Each person must open and contribute to their own ISA within the annual allowance.
If things go wrong?
If you’re unhappy with the service or want to make a complaint, start by contacting your provider or adviser. Most fund managers and ISA managers are regulated by the Financial Conduct Authority (FCA). If your complaint is not resolved satisfactorily, you can take it to the Financial Ombudsman Service.
Alternative Investment Specialist New Capital Link is a leading alternative investment specialist firm, providing bespoke solutions tailored to meet the unique needs of our clients. With a deep understanding of the market and a commitment to excellence, we help individuals and businesses navigate the world of alternative investments. Our team of experienced professionals possesses extensive knowledge and expertise in various asset classes, including private equity, real estate, and more. We pride ourselves on offering personalised service, thorough due diligence, and a focus on risk management.
“At New Capital Link, we believe that alternative investments, including Innovative Finance ISAs (IFISA) can play a crucial role in diversifying portfolios and achieving long-term financial goals,” said Rachel Buscall, CEO of New Capital Link. “Our mission is to empower our clients with the knowledge and resources they need to make informed decisions and capitalise on unique opportunities.”
Rachel Buscall | CEO New Capital Link
If you’re interested in exploring alternative investment options or seeking guidance on building a well-rounded portfolio, contact New Capital Link today. Our team is ready to assist you in navigating the complexities of the market and finding the right solutions for your specific objectives.
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What does ISA stand for?
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