Standard Life Investments

What are my ISA options?

There are different types of ISAs available to investors. What you choose is likely to depend on a number of factors such as investment time horizon or attitude to risk.

Stocks & Shares ISA

What is it?

It’s a tax-efficient investment account that lets you put your money into cash and/or different types of investments. Because these investments sit within your tax-free ISA wrapper, you do not have to pay capital gains tax on profits arising from your stocks and shares investments. In addition, there is no tax on dividend income from shares or interest paid on bonds.

A stocks & shares ISA can invest in a range of different type of investments including, unit trusts, Open Ended Investment Companies (OEICs), investment trusts and corporate/government bond funds. The range of investments will vary depending on the ISA provider.

As with all stock market exposure, there is a danger that the value of your investments can go down as well as up. At least within an ISA, whatever returns you do make are not liable to a tax charge. Please note tax rules can change at any time.

Who can invest?

You can invest in a stocks and shares ISA if you are a UK resident and are aged 18 years or over.

How much can you invest?

You can save up to a maximum set by the government each tax year into a stocks and shares ISA. You do not have to invest the maximum amount and you can save into other ISAs simultaneously so long as the combined total investment is within the £15,240 annual tax-free allowance for 2016/17 (the annual ISA limit is set to rise to £20,000 from April 2017). However, you cannot take out two or more ISAs of the same type, in the same tax year.

It is important to remember that ISAs are distinct for every tax year – from 6 April to 5 April the following year. There is no roll over of unused ISA allowance, so if you miss the end of tax-year deadline, that’s it.

The minimum investment in a stocks and share ISA varies depending on the product provider - it could be anything from a £100 or £1,000 lump sum; to £10 or £50 per month.

Other ISA choices

In addition to stocks and shares ISAs, UK residents can choose to invest in Cash ISAs, Junior ISAs, Innovative Finance ISAs, Help to Buy ISAs and, from 2017, Lifetime ISAs. While Standard Life Investments offers stocks and shares ISAs, we do not offer these other products. If you do require further information on these products, see your financial adviser or visit https://www.gov.uk/individual-savings-accounts/overview

Invest now and manage your investments with us through our online service My Standard Life Investments Funds.