ISAs - A Quick Recap  (23 Mar 2009 12:00 PM)

ISAs have been around for many years now, but the rules change from time-to-time.

Here's a quick reminder of what they are all about.

How much can I invest in an ISA?

Your full allowance is £7,200, but you can invest up to £3,600 of this in a cash ISA. If you only want to invest £1,000 in cash, you are free to put the remaining £6,200 in equities. You can also invest the full £7,200 in equities, if you wish.

You can now transfer the money you have accumulated in cash ISAs in to equities and still maintain their tax efficient status. For more details, call us on 0800 408 1324

How much tax will I pay?

The beauty of ISAs is that there is little, if any, tax to pay. Apart from a 10% tax on UK dividends, which is
paid by the fund manager on your behalf, there is no income or capital gains tax to pay. And if you are a higher rate tax payer or self employed, you don't have to declare ISAs on your tax return.

Why invest in equity ISAs now?

Investing in equities is a long-term commitment, so you should be concerned with performance over 5-10 years rather than look at what is happening right now. In fact, because stock markets, and as a result share prices, are currently low, by investing now you would be entering the market near the bottom rather than near the top.

Why TQ Invest?

The biggest advantage you get by investing through us is price. Fund managers set initial charges for buying their funds, which can be as much as 5% of the value of your investment. By investing through us these charges are significantly reduced and sometimes fully. On a £7,200 investment, this could add up to £360, which goes back into your investment. So it makes financial sense to invest through us.