DIY Investor Magazine
/
March 2016
13
ISAS AT A GLANCE
•
Those aged sixteen or over can open a Cash ISA
•
Those aged eighteen or over can open a Stocks
and Shares ISA
•
There is a Junior ISA (JISA) for those saving for
children under the age of 16
•
You can open one Cash ISA and one Stocks and
Shares ISA each tax year
•
You can withdraw money as with any other saving
account
•
If switching providers funds should be transferred
rather than withdrawn in order to preserve its tax
free status.
SELF SELECT ISAS
A Self-Select ISA is a tax wrapper that allows you to
invest in the stock market but with no fund manager
making investment decisions, you have freedom to
choose what assets you hold and when you trade them,
putting you in complete control. Permitted investments
include:
•
Individual shares (UK/overseas, AIM)
•
Funds – Unit Trusts and OEICs
•
Investment trusts
•
Bonds and Gilts
•
Exchange Traded Products
•
Complex instruments – Warrants, Securitised
Derivatives, Structured Products
Basic rate
tax-payer
Higher rate
tax-payer
Additional rate
tax-payer
Within an ISA
Capital gains (in excess
of the £11,100 annual
allowance)
18%
28%
28%
0%
Dividend income (i.e.
income from shares)
10%
32.50%
37.50%
10%
Interest income (i.e. from
cash, corporate bonds
and other fixed interest
investments)
20%
40%
45%
0%
TAX BENEFITS OF INVESTING IN A STOCKS & SHARES ISA
More information about ISA options and allowances can be found at
