New ISA rules help you accumulate tax-efficient wealth

You can accumulate substantial amounts a personal capital in a tax-efficient way via an Individual Savings Account (ISA).

From 1st July, ISAs will become even more attractive and more flexible:-

• All existing ISAs will become a simpler product called the New ISA (NISA).
• Your NISA annual investment limit will be increased to £15,000.
• You will be able to transfer your investments from a stocks and shares ISA to a cash account.
• A wider range of securities will be eligible for NISA investment.
• A child’s Junior ISA investment limits will be increased to £4,000.

Let us help you make the right ISA and NISA choice

Whether you are new to investing or considering adding to your existing portfolio, we can help you select from the wide range of ISA (and the new NISA) options available and ensure that they match your goals and attitude to risk. We can also help you make the most of your ISA/NISA allowance limits this tax year and each tax year thereafter. If you would like more information, please contact us to discuss your requirements.

TIP      

You can start investing at the new NISA contribution limit now by paying £1,250 per month (April to June). You will remain within the current ISA limits between now and the 1st July.

 

ISAs (and the new NISAs) are not an investment in their own right, but a wrapper in which you can hold investments or savings. When you hold savings or investments in an ISA/NISA, you don’t pay any capital gains tax on any capital gains you make from the proceeds.

The income from interest-bearing assets such as gilts and corporate bonds are also tax-efficient, but for investors holding equities that pay dividends, the situation is slightly different. A tax credit of 10% is deducted at source from dividends, which investors cannot reclaim.

Investment advice will be provided by our sister company ad+ Financial.

 

NOTES:

The Financial Conduct Authority does not regulate taxation & trust advice.

The content of this Tip is for your general information and use only, and is not intended to address your particular requirements. The content should not be relied upon in its entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of the content. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts. Levels and bases of reliefs from taxation are subject to change, and their value depends on an individual’s personal circumstances.

UK dividends and distributions carry a 10% notional tax credit which cannot be reclaimed, whatever your personal tax status. Past performance is not necessarily a guide to the future. The value of investments and the income from them can fall as well as rise as a result of market and currency fluctuations, and you may not get back the amount originally invested. Tax assumptions are subject to statutory change and the value of tax relief (if any) will depend upon your individual circumstances