ISA Questions Answered

They’re a great way to save tax in the UK, so what is holding you back from making use of your ISA allowance?

Over the years, rules regarding stocks and shares ISAs have changed, so we wanted to answer some of our most commonly asked questions.

Is there a minimum amount you need to get started? 

Most people believe that you need a large amount of savings or a high income to be able to start investing in a stocks and shares ISA, however this is not true for most providers. The minimum amount of funds to start your ISA will vary between providers, with some even starting as little as a £100 lump sum or £25 a month. Meaning it is a lot more affordable for most people.

Do I need to keep it in the same place after I have opened an account? 

Did you know that you can transfer your ISAs between different providers?* It’s easy to believe that whoever you open your ISA with, must manage it for the foreseeable future, meaning a lot of people do not tend to transfer. You can also move your funds from a cash ISA into a stocks and shares ISA and visa versa. When trying to figure out which provider and type of ISA is best for you, make sure to check with your current provider whether they charge any exit fees, however, selling of investments from within the ISA may incur charges.

Can I take funds out if I need them?

Stocks and share ISAs were originally made for long-term investing as this is where you gain the most benefit. However, there may be times where you consider withdrawing funds – this is easy to do, and most providers would not charge any withdrawal fees.

Can I pay into more than one type of ISA in a year? 

Each year, you have a £20,000 ISA allowance. You can split your funds between different types of ISAs. For example, you could invest £10,000 into a stocks and shares ISA and the remaining £10,000 into a cash ISA.

Just be aware that although you can split your allowance into different types of ISAs, you cannot pay into one ISA of each type. For example, you could not invest into two separate stocks and shares ISAs within a tax year.

Can I take time to choose how I want the funds invested?

If you are unsure which ISA is the best for you, you can invest cash into a stocks and shares ISA whilst you decide. Even though this way would not earn much interest on top of your funds, choosing where to invest money is a massive choice and you should always be 100% in where you chose, meaning investing cash can be useful whilst you do your research before the end of the tax year.

This isn’t personal advice – if you’re not sure ISAs are right for you, you should ask for financial advice. Remember tax rules can change and benefits depend on individual circumstances.

The value of an ISA with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise.  You may get back less than you invested.

An investment in a Stocks and Shares ISA will not provide the same security of capital associated with a Cash ISA. 

The favourable tax treatment of ISAs may not be maintained in the future and is subject to changes in legislation.

Please note Cash ISAs are not available through St. James’s Place

*Please note you will be out of the market until the transfer is complete. You won’t lose out if the market falls, but you will be unable to switch or sell these funds while the stock market falls or rises during this time.

Sovereign Wealth Limited is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the group’s wealth management products and services, more details of which are set out on the group’s website Sovereign Wealth Limited is a Limited company registered in England and Wales, Number 07115386. The ‘St. James’s Place Partnership’ and the titles ‘Partner’ and ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives.