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Adult Stocks & Shares ISA
What is an ISA?
- Individual Savings Account (ISA) is a tax-efficient way to save
your money. This is better known as a "wrapper" in which you can
shelter your savings and investments from tax.
- There are two main types of ISA, Cash ISAs and Stocks and
Shares ISAs.
- TSCTRADE only offer Stocks and Shares ISA accounts and
there is an annual Administration Charge of £50 + VAT.
ISA Subscription limits
Eligible adults can invest half of their
subscription allowance into a Cash ISA and the rest into an
investment ISA or use the overall allowance to solely invest in a
stocks and shares ISA within each tax year:
| Tax Year |
Investment ISA |
Cash ISA |
Overall ISA Limits |
| 2019/20 |
£20,000 |
£20,000 |
£20,000 |
You may only pay in up to the limit each year,
regardless of how much you withdraw, so think carefully before
making any withdrawals.
Key Information
- Investments held within an ISA wrapper are exempt from Capital
Gains Tax (CGT)
- Unlike Cash ISAs, stocks and shares ISAs aren't always
completely tax-free. If you're a basic-rate or starting-rate
taxpayer with no capital gains, you'll pay the same tax on
share-based investments as you would on non-ISA investments. ISA
income does not need to be declared on tax returns. For example,
buying a stocks & shares through an ISA will only save you tax
if you are expected to pay capital gains tax or are a higher rate
taxpayer.
- There is no further income tax liability for higher rate
taxpayers. [Tax rules can change and their effects depend on the
individuals' circumstances]
- However, if you use your stocks and shares ISA to invest in
interest-bearing investments, like corporate bonds, the interest
is tax-free whatever tax band you fall into.
- You can Transfer in existing ISA accounts to TSCTRADE at no additional cost, however your current provider may charge an
exit fee. Please see our guide for dealing execution charges.
- You can only invest in a stocks and shares ISA with one
financial institution each year.
- HMRC states that cash may be held in a stocks and shares ISA to
invest in qualifying investments. This includes cash
subscriptions, interest and dividends, and proceeds from disposals
of qualifying investments that have not yet been reinvested.
Who is eligible for an ISA?
- Private individuals that are UK residents aged 18 years or over
and/or ordinarily resident in the UK for tax purposes are eligible
to invest in a Stocks and Shares ISA. Please ask your tax office
if you are in any doubt.
- There is no upper age limit.
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