Stocks & Shares ISA Account
What is an Individual Savings Account (ISA)?
Individual Savings Account (ISA) is a tax free savings vehicle, which means that the money you put in will grow tax free (with the exception of tax credits on dividends). Your returns will be completely free of income or capital gains tax and do not need to be declared on your tax return. ISAs are available to people who are resident in the UK for tax purposes.
Who is the ISA Manager?
The ISA Manager is Fundment. Fundment is approved by HMRC to act as ISA Manager.
Who can open Stocks & Shares ISA Account?
Anyone over the age of 18 or who will be 18 during the tax year in which the ISA is opened, but only after their 18th birthday. You must also be UK resident for tax purposes. You can't open an account together with someone else, or on behalf of someone else.
How much can you put into an ISA?
You are able to invest up to £20,000 in a Stocks & Shares ISA or, if you have subscribed elsewhere to another type of ISA in the current tax year, you may subscribe the balance in a Stocks & Shares ISA. In subsequent years the allowance may alter.
You can withdraw cash from your Stocks and Shares ISA and replace it in part or in full without the replacement counting towards the annual ISA subscription limit providing the replacement is made into the same account and in the same tax year as the withdrawal.
You may transfer some or all of your money from another type of ISA, without affecting your current tax year limit.
Remember, tax depends on your individual circumstances and may change in the future.
What are the tax benefits of investing in Stocks & Shares ISA?
Broadly, the tax advantages are as follows:
- You don't have to pay any capital gains tax on profits made from share price increases. Invest outside an ISA and any profits made above the annual capital gains tax allowance (£12,000 for 2019/20) would be subject to tax at 10% for basic rate taxpayers and 20% for higher rate and additional rate taxpayers on shares. You make a profit when you sell a share for more than you bought it for.
- You don’t have to pay any tax on dividends paid within ISA account. After using the dividend allowance, which is currently £2,000 (2019/20) the basic, higher and additional rate taxpayers have to pay tax at 7.5%, 32.5% and 38.1% respectively.
- You do not have to include any information about your ISAs in your tax return.
You cannot use any losses in your ISA to set off against any gains elsewhere.
What are the charges?
Click here to view our charges.
How do you deal with the cash I hold within Stocks & Shares ISA Account?
Any cash within your account is held on deposit with the appointed custodian Winterflood. No interest is paid on cash.
What is the difference between Cash ISA and Stocks & Shares ISA?
Cash ISA is just like a basic savings account where you get a return based on an interest rate. With cash ISA no tax is taken from the interest you earn, meaning you can earn more from your savings. A stocks and shares ISA is a tax efficient investment where money buys bonds or shares in companies on the stock market. The aim of the investment is to grow your money using the potential growth opportunities, but there are no guarantees because the value can go down as well as up and the past performance of the investment is not a reliable guide to future. Choosing the right ISA for you depends very much on your approach to risk. If you want a low risk account, Cash ISAs could be for you. But if you want the opportunity to earn a higher return, you may want to consider Stocks and Shares ISA.
Can I have different ISAs?
You are limited on how many ISAs you can subscribe to in each tax year. You can only put money into one Cash ISA and/or one Stocks and Shares ISA and/or one Lifetime ISA and/or one Innovative Finance ISA and you must make sure you don't exceed the total ISA allowance for the tax year. The current tax year’s (2019/20) annual ISA allowance is £20,000.
Can I transfer ISAs held with other providers to Stocks & Shares ISA Account?
You can transfer:
- Your current year ISA subscriptions and/or
- All or part of ISA subscriptions made in previous tax years
If your ISA contains current year subscriptions only, the entire account must be transferred. Alternatively, you could, for example, transfer your savings from the year before to the Stocks & Shares ISA Account and leave your current tax year savings where they are.
How do I transfer my existing Stocks & Shares ISA to Simply Ethical?
To transfer your existing account, please complete our online account opening application.
We only accept transfer in the form of cash.
Cash transfer means that your current investments will be sold and the cash transferred to your ISA with us.
Please be aware that a cash transfer means:
- You may lose out on investment growth while your investment is not invested during the transfer period.
- You may incur charges when you purchase new investments to be held within your account with us.
- You will not have access to your ISA until such time as the transfer is complete.
Can I transfer my Stocks & Shares ISA Account to another ISA provider?
Yes, we will require a completed transfer authority form from your new ISA provider. We can make the transfer by cash or we can transfer your investment holdings direct to your provider without selling them. However, the way in which we transfer will be determined by your new ISA provider’s terms and conditions.
How do I make withdrawals?
To may instruct a withdrawl from your account through customer dashboard. There is no charge for withdrawal and it take 3 to 6 business days for your money to reach your nominated bank account.
What happens to my ISA if I die?
When you die your spouse or civil partner can inherit your ISA savings and keep them with a tax-free status. The value of your ISA(s) will be calculated from the day you die. Your spouse or civil partner can apply to inherit your savings in the form of an allowance, which is also called an ‘Additional Permitted Subscription’ or APS allowance. Your spouse or civil partner’s own individual ISA allowance (£20,000 for 2019/20 tax year) will be unaffected.
You don’t have to leave your spouse or civil partner your money in your will for them to benefit from the APS allowance. Instead, you could leave the savings you have built up to someone else in your will, for example, one of your children, and your spouse or civil partner will still be able to apply for APS allowance. Their APS allowance would be up to the value of your ISA, although your spouse or civil partner would need to use their own money to save into it. The APS allowance is only allowed for death on or after 3 December 2014.
What might I get back?
The amount you get back is not guaranteed and depends on a number of factors, such as:
- How much you invested
- The length of time you invested for
- The performance of the investments
- How much our charges are
- The amount of any withdrawals you have taken
Can I change my mind after I have subscribed to Stocks & Shares ISA Account?
You have up to 14 days beginning from the date your account is opened to cancel your account. We will sell any investments on your behalf but will not be responsible for any market loss that you may incur as a result.