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Stocks and Shares ISAs |
Investment Funds |
Onshore Bonds |
Offshore Bonds |
| In summary |
Invest up to £11,280 each tax year, and any capital growth made will be tax-free. |
Choose from a selection of funds which are professionally managed.
You can invest for income, growth or both.
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A choice of Onshore Bonds with different features and charge structures.
Choose from a wide range of investment funds to suit your investment needs and objectives. Take
regular, tax deferred withdrawals and/or invest for capital growth.
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Choose from a wide range of investment options and benefit from tax-efficient investment
growth within the bond as well as tax-deferred withdrawals.
While invested in an
offshore bond, you won’t normally pay tax on any growth.* Instead, tax is paid when you take money out of
the bond and will be based on your circumstances at that time. This gives you control over when you pay
tax, and how much.
*There may also be withholding tax payable on certain
investment funds. This is a tax that some countries deduct from dividends and interest payments to
foreign investors. It is not possible to reclaim withholding tax.
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| Tax |
Any return you make is tax-efficient. ISAs
don’t have to be declared on your tax return.
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The same tax rules apply to a mutual fund as they would if you directly owned the equities and bonds
held by the fund.
The amount of tax you
might need to pay on any income or capital growth will be determined by your personal tax
circumstances.
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For a tax efficient income, you can take 5% 'tax-deferred' withdrawals each year, for 20 years, until
you’ve taken out 100% of the total amount you’ve paid in.
If you don’t use any of this allowance in a
specific year it can be carried forward to future years
You may only pay tax when you cash in more than the permitted withdrawal amount. Tax is
deducted on income and gains on the fund(s) investments. This means that if you are a non taxpayer or a
basic-rate taxpayer, you will normally have no additional tax to pay on the proceeds of the bond.
You may be able to reduce the impact of tax by choosing to time any withdrawal with when you are
paying a lower rate of tax or assign part or all your bond to a lower rate taxpayer before cashing in.
All fund switches are currently free of charge and do not incur a liability to tax.
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For a tax efficient income, you can take 5% 'tax-deferred' withdrawals each year, for 20
years, until you’ve taken out 100% of the total amount you’ve paid in.
If you don’t use any of this allowance in a specific year it can be
carried forward to future years.
You only pay tax when you cash in more than the
permitted withdrawal amount. At that point, any gain is added to your income and taxed as such.
If this takes you into the next tax bracket, there are tax reliefs available that can help reduce the
effect of this and the tax you have to pay.
You can choose to time any withdrawal with when you are paying a lower rate of tax or if you plan to
move or work abroad in a country with more favourable tax rates.
Most investment switches are free of charge and do not incur a liability to tax.
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| Making payments |
Regular payments or lump sums, up to a maximum of £11,280 in any tax year. Minimum investment of £50 a month or a £500 single payment.
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Regular payments or lump sums. Minimum investment of £50 a month or a £500 single payment.
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Lump sums only. Minimum investment amounts start from £5,000. The minimum limit for additional payments is £1,000. |
The minimum amount you can first pay in is £20,000. You can make additional payments when
you want The minimum limit for additional
payments is £2,500.
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| Fund choice |
You have a choice of more than 1,800 funds to suit different investment strategies and attitudes to
risk. |
You have a choice of more than 1,800 funds covering equities, bonds, cash and property. |
You have more than 150 funds to choose from covering the major asset classes such as equities, bonds,
property and cash. |
Choose from over 1,700 investment funds. You can also invest in:
Whole of market funds
Deposit accounts
Structured deposit accounts
Or through Discretionary Investment Managers
You choose what to invest in depending on how much risk you want to take and what you want to achieve;
growth, income or both.
There’s no limit on the number of investments you can invest in at any one time.
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| Withdrawing money |
You can make withdrawals when you want. Remember that you can only add money to the ISA on top of your investment if you've not already
used up the investment limit of £11,280. in the same tax year.
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You can make withdrawals when you want. This is done by selling some or all of your units or shares in
the fund(s).
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Depending on the bond, you’ll be able to choose monthly, quarterly, 4 monthly, half-yearly, yearly or
one-off withdrawals.
It’s not necessary to cash-in the whole bond if you need to take money out. Once you’ve invested
in a bond, you’ll also be able to switch between different investment funds. Switches are currently free
of charge.
The minimum one off withdrawal is £125.
The minimum regular withdrawal amount is £50.
The maximum regular withdrawal rate is 10% a year of the total paid in.
For a tax efficient income, you can take 5% ‘tax-deferred’ withdrawals each year, for 20 years, until
you’ve taken out 100% of the total amount you’ve paid in. If you don’t use any of this allowance in a
specific year it can be carried forward to future years.
(Capital Investment Bond and Distribution Bond – Stepped Charging Option).
Depending on how much you cash in, there may be an exit charge on withdrawals in the first 5 years
(Tailored Investment Bond).
Depending on how you decide to pay your financial adviser and how much you cash in, or if your bond
lapses, there may be an exit charge on withdrawals in the first 6 years of your bond.
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You can make one off withdrawals when you want.
Regular withdrawals can be made every:
month; 3 months; 4 months; 6 months or year. The minimum one off withdrawal is
£500.
The minimum regular withdrawal amount is £200.
The maximum regular withdrawal rate is 10% a year of the total paid in, less any one-off
withdrawals.
For a tax efficient income, you can take 5% ‘tax-deferred’ withdrawals each year, for 20 years, until
you’ve taken out 100% of the total amount you’ve paid in. If you don’t use any of this allowance in a
specific year it can be carried forward to future years.
Depending on how you decide to pay your financial adviser and how much you cash in, or if your bond
lapses, there may be an exit charge on withdrawals in the first 6 years of your bond.
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