Our ISA is offering access to a Stocks and Shares ISA, through which investors are able to invest in bonds.
Your annual ISA allowance is set by the government and is typically reset every April. For the 2018-2019 tax year, the ISA allowance is £20,000.
There is no limit on the value of tax-free transfers into the ISA from other types of ISAs.
The account is available to individuals aged 18 or over. You must be a UK resident for tax purposes or be performing duties as a Crown employee, or be married to, or in a civil partnership with such a person. The account can only be held in your name.
You will normally have the choice to receive it on a 6 monthly or annual basis, depending on the product. The interest can be paid to your account, or you can choose to reinvest it. If you reinvest the interest this interest will then attract further interest, known as compound interest.
Compound interest is the amount of interest you earn from the initial deposit and the accumulated interest for that period. The interest will continue to ‘compound’ and add for the period of the investment.
The interest on the ISA is tax free. You do not pay any additional personal income tax or capital gains tax on any money you earn from your ISA. You don’t need to declare any ISA interest as the ISA manager does this for you.
The ISA is sympathetic to the fact that events do take place from time-to-time which are completely out of the control or planning of individuals. In this regard, in the event of the death of the investor their legal personal representative(s) are permitted to apply for early redemption, without penalty, following the grant of probate.
In the event of serious injury, serious ill health, or disability consideration may be given to early redemption by the ISA in its absolute discretion and in each case having the circumstances evidenced to its satisfaction.
Some ISAs we work with will allow you to redeem after 6 months, by giving 30 days’ notice to the ISA manager. However, within the first 3 years from investment any redemption would attract an early redemption penalty equivalent to 6 months of interest or £295, whichever is the greatest.
No – you are investing in Pounds Sterling and your interest is paid in Pounds Sterling.