ISAs overview

Good news on ISAs

Individual Savings Accounts, or ISAs for short, are here to stay.

The Government has confirmed that the most successful savings products of the last decade - £109bn was held in Stocks & Shares ISAs in April 2011 (data from Investment Management Association) - will remain "a permanent feature of the savings landscape".

Why are ISAs so popular?

Because an ISA is a highly tax-effective way to invest up to £10,680 a year in cash, stocks and shares and other qualifying investments altogether in one "wrapper".

All capital gains are tax-free and there is no personal income tax to pay although dividends are paid net of basic rate tax (which benefits higher rate taxpayers). There is no need even to tell the tax authorities about ISA investments or income.

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Why choose Allenbridge?

• Key reasons:
• Discounts on fund purchases
• Access to our impartial expert analysis and fund recommendations
• AllenbridgeCare - our comprehensive after sales service, including Red Alert notices that keep you fully briefed about the progress of your investments
• Helpful and informative customer support staff to provide you with as much investment guidance as possible to help you reach the best investment decisions. See the Reasons to Choose Allenbridge >

ISA details

The basics

ISAs are divided at present into two categories - Cash ISAs and Stocks & Shares ISAs.

An ISA can be split with up to £5,340 in cash and the balance in stocks and shares. A Stocks & Shares ISA differs in that all the £10,680 investment allowed can be held in stocks and shares, with the option of including a cash element.

Investors can put in up to £10,680 in total each tax year in addition to what they have already invested in previous years, so as to build up a substantial tax-efficient savings fund.

Other points to note:

• Tax rules are subject to change.
• In a Stocks & Shares ISA whilst you have the potential for growth you could get back less than you invested.
• You can also transfer existing ISAs between managers whenever you like without affecting the amount you can invest in each tax year.
• You can use one account manager for your Cash ISA up to £5,340 and another account manager for your Stocks & Shares ISA up to a total of £10,680
• You can only use one account manager within a single tax year when solely investing in a Stocks & Shares ISA.