NEWS & MEDIA

An introduction to Stocks & Shares ISAs: Part 1 of our end of tax year series

25 February 2019

This article is not advice or a recommendation to buy, sell or hold any investment. All trading involves risk.

 

Now is the time to prepare for the end of the tax year with an Individual Savings Account, commonly referred to as ISA – a beneficial vehicle for long-term savings, sheltered from taxation.  ISA’s enable individuals to save or invest money without paying income or capital gains tax on investment returns accrued.  For each tax year, there’s a limit to the amount that can be invested through an ISA, termed the annual allowance. For the 2018/19 tax year, the allowance is £20,000.

It should be remembered though that tax rules are liable to alteration, and personal circumstances can affect how beneficial they are.

 

Stocks and Shares ISAs

Stocks and Shares ISAs were introduced in 1999 and provide retail investors resident in the United Kingdom with one of the most tax efficient investment wrappers available: returns generated are free from Capital Gains Tax, while dividends received within an ISA will remain tax free and won’t impact your dividend allowance.

Whilst Cash ISAs are the most popular, interest rates are poor currently, and have been for a while.  Stocks and Shares ISAs are not limited by these rates in the same way, and as long as you are happy with the level of risk, they can offer an effective and efficient vehicle for saving.

Within a Stocks and Shares ISA it is possible to hold a variety of investments, including funds, shares and corporate bonds, amongst others, protecting any returns from tax.  They are generally regarded as being most effective for longer term investing, as they can produce significantly higher returns.  It should be remembered however that there is an element of risk involved with Stocks and Shares ISAs; the value of your investment can go down as well as up, so it is possible to lose money.

Junior Stocks and Shares ISAs (JISAs)

Junior Stocks and Shares ISAs allow parents or guardians with parental responsibility to invest in a tax efficient investment wrapper on behalf of a child. The parent or guardian responsible maintains control of the Junior ISA until the child turns 18 years of age, but as soon as a subscription has been made the money becomes the child’s.  JISAs were introduced on 1 November 2011 and replaced the old Child Trust Fund Schemes.  The Junior ISA allowance for current tax year which runs from the 06th April 2018 to the 05th April 2019 is £4,260

Who can open an ISA?

The individual must be:

  • 16 years or above for a cash ISA
  • Your child must be under 18 years for a Junior ISA
  • 18 years or above for a Stocks and Shares ISA
  • Resident in the UK
  • A Crown servant (E.g. Diplomatic or overseas civil service) or their spouse or civil partner if not residing in the UK

 

The Shard Capital Stockbroking team are highly experienced in portfolio management and diversification and can tailor an investment solution for an individual looking to start or grow their ISA.

If you would like more information on a stocks and shares ISA or an alternate investment solution, please contact the Shard Capital Stockbroking team.

 

 

Important Investment Information –

“This document has been prepared and issued by Shard Capital Partners LLP (“Shard Capital”), which is authorised and regulated by the Financial Conduct Authority.

This document is a marketing communication and not independent research. As such, it has not been prepared in accordance with legal requirements designed to promote the independence of investment research.

This document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities, or related financial instruments. It does not constitute a personal recommendation as defined by the Financial Conduct Authority, nor does it take account of the particular investment objectives, financial situations or needs of individual investors. The information contained herein is obtained from public information and sources considered reliable. However, the accuracy thereof cannot be guaranteed.

The information contained in this document is solely for use by those persons to whom it is addressed and may not be reproduced, further distributed to any other person or published, in whole or in part, for any purpose, at any time, without the prior written consent of Shard Capital. This document may not be distributed to any persons (or groups of persons) to whom such distribution would contravene the UK Financial Services and Markets Act 2000. Moreover, this document is not directed at persons in any jurisdictions in which Shard Capital is prohibited or restricted by any legislation or regulation in those jurisdictions from making it available. Persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.

Shard Capital or its employees may have a position in the securities and derivatives of the companies researched and this may impair the objectivity of this report. Shard Capital may act as principal in transactions in any relevant securities or provide advisory or other service to any issuer of relevant securities or any company connected therewith.

None of Shard Capital or any of its or their officers, employees or agents accept any responsibility or liability whatsoever for any loss however arising from any use of this document or its contents or otherwise arising in connection therewith. The value of the securities and the income from them may fluctuate. It should be remembered that past performance is not a guarantee of future performance. Investments may go down in value as well as up and you may not get back the full amount invested. If you are unsure of the suitability of share dealing specifically for you then you should contact an Independent Financial Adviser, authorised by the Financial Conduct Authority. By accepting this document, the recipient agrees to the foregoing disclaimer and to be bound by its limitations and restrictions.

Shard Capital has in place a Conflicts of Interest Policy relating to its research and marketing communication activities, and disclosure and conflicts in general is available on request.”

NEXT STORY


Related services

image description

Stockbroking

Stockbroking

image description

Wealth Management

Wealth Management