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 - some 17m people have invested more than £220 billion in them since they were introduced in 1999 - 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 £7,200 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.

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 Seven 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 between £3,600 in cash and the balance in stocks and shares. A Stocks & Shares ISA differs in that all the £7,200 investment allowed can be held in stocks and shares, with the option of including a cash element.

Investors can put in up to £7,200 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.

Opening a Cash ISA of any sort immediately limits you from fully funding a Stocks & Shares ISA in the same tax year.

Other points to note:

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 £3600 and another account manager for your Stocks & Shares ISA up to a total of £7200
You can only use one account manager within a single tax year when solely investing in a Stocks & Shares ISA.

Changes in October 2009

As of 6 October 2009, over 50s will have an extra £3000 to use in their Stocks and Shares ISA. This allowance will then be extended to everyone as of 6 April 2010.

So, if you have already opened a Cash ISA, or intend to open one, don't forget that you can still invest through Allenbridge, the balance of your £7,200 allowance that remains, in funds, and give yourself the possibility of long term tax-free growth.