Individual Savings Accounts (ISAs)

An ISA is a tax efficient account for cash savings and investments in equities, bonds and collectives.

 

Cash ISAs and Stocks and Shares ISAsstocks

ISAs are Individual Savings Accounts, and available to all UK residents over the age of 16, or 18 for stocks and shares ISAs. All gains in an ISA are free from tax, there is usually a low minimum subscription and no minimum period of investment. Joint ISAs are not available.

You can use an ISA for investments in equities, bonds and collectives, and cash deposits.

For 2017/18, the maximum subscription into ISAs for each individual is £20,000 for the tax year. See our Tax Rate Card 2017-18 for the other maxium amounts that can be invested in Junior ISAs, Lifetime ISAs and Help to Buy ISAs >more

Although gains in ISAs are tax-free, stocks and shares are subject to a 10% dividend tax credit for UK equities, which cannot be claimed back.

Transferring your ISA

It is only possible to hold one of each type of ISA per tax year, meaning if you close an ISA in the same tax year it is was opened, you cannot open a new one until the next tax year.

You can transfer your ISA between providers, but not all providers will accept transfers.

Cash ISAs are often transferred to avoid a drop in initial interest rates and benefits e.g. if you have a cash ISA you can be transferred to a stocks and shares ISA and vice versa.

With your account details, the new provider will manage the process of transferring your ISA from initiation to completion. Remember, you can't close an ISA and open a new one in the same tax year. Doing this nullifies the tax-free status of your investment.

Your ISA allowance for the current year is unaffected by previous years, meaning you can hold two ISAs – this year's and last's – as long as you are only contributing to one throughout the tax year.

If you're confused about ISAs, or want to find out the best way to invest your money, speak to one of our independent financial advisers in Glasgow.

Contact our ISA Advisers to arrange an appointmentTimeMgt

While we are based in Glasgow, we are happy to travel to visit clients across Scotland and the rest of the UK. For free initial ISA advice from our experienced financial advisers, contact us on 0141 272 0000 or fill out our online enquiry form.