Stocks and Shares ISA


Within a Stocks & Shares ISA investors are exempt from:

 
 Capital Gains Tax
 Further tax on income
   

The UK tax year ends on 5 April each year.
This is the deadline to make a deposit into your ISA using your annual allowance.
Any remaining allowance cannot be carried over to the following year.

 

Without utilising your ISA allowance, your investments may be subject to the taxes outlined below; For dividend income:

The 10% tax paid on the gross dividend extinguishes an individual's basic rate liability. This tax cannot be reclaimed for the credit of your NISA

If you are a higher rate taxpayer, you would normally pay tax at a rate of 32.5% or 42.5% on dividend income generated from UK equities. For investments within a NISA, you will not get back the 10% dividend tax credit, but you will save by not having to pay the additional 22.5 – 32.5% tax rate

 

For realised gains/profit:

The current annual Capital Gains Tax (CGT) allowance is £10,600. After this individuals are charged CGT at a rate of 18% or 28%, depending on your total taxable income.

 

Key Benefits
A Stocks and Shares ISA is a tax-efficient way to invest money as any profit is exempt from Capital Gains Tax. You can choose to invest your money in a wide range of ISA qualifying stocks and shares from both the UK (including AIM stocks) and on six international markets. You can also invest in funds, bonds, gilts and more.

 Pay no Capital Gains Tax on any potential profit.
 Trade on seven world markets with our award-winning online share dealing service.
 Low cost dealing and administration charges.
 How much can I invest in a Stocks and Shares ISA?
   
Each year the Government allows you to invest in a tax-efficient product called an ISA, or Individual Savings Account. The maximum amount you can invest in the current tax year is £15,240. You can choose to invest your full allowance into either a stocks and shares ISA or a cash ISA, or alternatively you can split your allowance between a cash ISA and a stocks and shares ISA. For example, if you invest £10,000 into your stocks and shares ISA, you must save no more than £5,240 in a cash ISA.
   
Remember
 Tax rules can change and the value of this favourable tax treatment to you will depend on your individual circumstances
 Investments can fall in value and you may get back less than you invested
 We don’t offer advice on investments.
 Investing without advice is not for everyone and if you’re unsure, please seek independent advice.
   
Please note we do not guarantee the accuracy of the information on this site. Please visit HMRC or speak with an Independent Financial Tax Adviser
   

 

 

Other Information
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  • E: Info@MarshallSterling.co.uk

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