ISA Guide
The Individual Savings Account, or ISA, is simply a tax-free shelter, or ‘wrapper’, in which you can place your investments to give them tax-free status.
ISAs are a ‘wrapper’ into which one or more of the following ISA components may be placed:
- The investment component - also known as the ’stocks & shares’ component, this section of an ISA may include Unit Trusts, Gilts, Corporate Bonds, Individual Company Shares, and OEICs
- The cash component - may include bank or building society deposits, National Savings and cash Unit Trusts
Our Fund Supermarket allows investors to “mix ‘n match” funds from 55 investment managers all within the one ISA wrapper. This compares with normal investment ISAs that only offer you the choice of one fund manager’s range of funds.
The great attraction of the ISA is that it is virtually tax-free.
Interest from cash ISAs, and Corporate Bonds & Gilts held in an investment ISA, will be free from income tax.
Even if you are a higher rate taxpayer, you will not have to pay Income or Capital Gains tax on your ISA proceeds. You do not even have to mention ISAs on your tax return.
The previous plans were PEPs and TESSAs, and the present Government has developed the ISA in the belief that even more savers will be tempted to put money away.