At Prosperis, we have the combination of specialist advice and a
distinctive approach to investment management that can help you
make the most of your ISA allowance.
Despite the current uncertainties, your annual ISA allowance
remains a valuable, tax-efficient part of any long term financial
plan. However, if you don't use it, you lose it. You can currently
invest up to a maximum of £10,680 (2011/2012) with the allowance
increasing by inflation each tax year thereafter.
You can have both a cash ISA or a stocks and shares ISA. The
cash element in an ISA can be in the form of deposits and savings
accounts with banks, National Savings or building societies as well
as other "cash based" investments.
ISAs can be invested in "stocks and shares" and this may include
investments in unit trusts, open ended investment companies,
investment trusts, ordinary shares, fixed interest preference
shares, corporate bonds having at least five years to maturity, all
FSA authorised retail investment schemes and UK Real Estate
Investment Trusts, stakeholder medium term products and certain
life insurance policies.
The ISA offers cash investors the same tax free conditions as
share investors in that there is no lock-in period. Withdrawals can
be made at any time without losing tax relief attributed to the
account.
If you want further information about investment, withdrawals
and re-investments in ISAs, one of our advisers will be happy to
help.
ISA Limit
From 6 April 2011, all eligible savers can invest up to £10,680
in an ISA, of which £5,340 can be held in cash or the entire amount
can be held in stocks and shares. This changed followed the
announcement that from the 2011/2012 tax year the annual ISA
allowance would increase in line with inflation.
You may pay into both a stocks and shares ISA and a cash ISA
during the same tax year provided you do not exceed the annual
limit on the accounts combined and do not exceed the limit on cash
deposits.
On April 6 2008, cash ISAs and stocks and shares ISAs replaced
the Mini and Maxi ISAs.
What are the benefits of ISAs?
- No tax on income from your ISA
- No tax on capital gains arising on your ISA
- No tax when the policy pays out
Who can have an ISA?
To open an ISA you have to be aged 18, or 16 for a Cash ISA. You
must be a resident in the UK. You cannot hold an ISA jointly with,
or on behalf of, anyone else.
Cash ISAs
Cash ISAs allow you to save your money without paying any income
tax on the interest you earn, making the interest you earn more
valuable than a normal savings account. There are a number of cash
ISAs, including fixed rates and instant access options, for your
2011/12 cash ISA allowance of £5,340.
Stocks & Shares ISAs
Stocks and shares ISAs offer a tax efficient way of investing.
There are a wide range of stocks and shares ISAs, also known as
investment ISAs on the market, so it is a good idea to shop around
for investments that meets your needs.
If you have any questions or would like to arrange a meeting to
discuss your investments, please give us a call on 0113 234 5528 or
complete the online enquiry form and we
will get back to you to discuss your requirements.