Indiviual Savings Accounts

ISAs were introduced on 6 April 1999, replacing the earlier Personal Equity Plans and Tax-Exempt Special Savings Accounts.

An ISA can contain two components:

  1. A cash component: a cash deposit that is similar to any other ordinary savings account, apart from the tax-free status.
  2. A stocks and shares component: the money is invested in ‘qualifying investments’ consisting of any combination of stock market equity investments public debt securities such as government or corporate bonds, As a consequence, the risk profile of the ISA may be anything from low to high. The investments may also include or consist of property funds or derivatives such as options. This element may be self-invested and managed through a stockbroker.

ISA’s are tax-free in that they are not subject to Income or Capital Gains Tax, therefore there are limits on the amount that can be invested in them. Please contact us for investment limits for the current tax year.