Looking to pay less tax- Why not use tax efficient investment plans

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					An ISA (Individual Savings Account) is usually a UK investment that features
specific tax advantages. Many Individual Savings Accounts are versatile enough for
you personally for you to invest either as a lump sum or month to month.

Individual Savings Accounts came into effect in1999 Within the 2008/2009 tax year,
it had been possible to switch from being a Cash ISA into a Maxi ISA ISA. Before
2008/2009, it actually was impossible to move between component types.

Individual Savings Accounts may be used for Income,capital growth or a combination
of income and growth.

Any transfer should be done between the managers. If a saver transfers the cash
themselves, it's going to be treated as being a withdrawal. They can't invest this within
an ISA if they have used their allowance for that tax year.

Who is allowed an Individual Savings Account?

If you would like invest into an Individual Savings Account you will need to be older
than 18 (or 16 if for a cash Individual Savings Accounts). You have to also be living
within the uk for Tax Purposes or an employee for the crown and paid by the Govt
whilst doing work abroad. An ISA may not be owned jointly or with a company.

How to set up an ISA

It is easy to transfer between Individual Savings Account providers. It is now possible
to use a facility known as a fund platform that provides access to a diverse range of
funds. It is possible to transfer monies either entirely or simply just portion of the
investment. If you wish to transfer monies which were invested in to the current tax
year then you must transfer all the investments proceeds for the tax year.

Limits on ISAs

An overall total subscription limit of £10,200 is available, that could be invested:

As much as £5100 in cash along with the residual £5,100 to put into a Maxi
individual savings account. Alternatively you can:

Make use of the full allocation into Maxi ISA as much as £10,200.

Present ISA investors

If you hold Individual Savings Accounts from previous tax years it could be really
worth using a feature known as re-registration. This helps you combine your current
stocks and shares ISA's while not having to sell investments.
Any kind of investment returns which have been obtained are mainly tax-free. Since
April 2004, income from equities or equity (share) based unit trusts held within an
Individual Savings Account will have a tax of 10% taken off. It's not feasible to
reclaim this tax.

Any income from cash and fixed interest funds are classified as paying out interest.
The fund manager can reclaim a tax credit of 20% internally. This certainly does not
apply to the investor.
Isa's can help in tax planning as investments held within isa's aren't at the mercy of

Being an ISA investor you don't need to supply info for the tax man if you complete a
UK tax return.

In the event of your death the valuation on your ISA's will be added to your estate for
inheritance tax purposes.

Latest Individual Savings Account interest rates

Many websites list the latest interest rates. Just search Yahoo or Bing.

Additional information can also be found in the articles below:


Independent Financial Advice

As a financial adviser we can provide impartial advice about any existing or potential
investment you might want to make.

Our company offers impartial advice on school fees planning

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