Many people don’t use their ISA allowance because they are confused by it, often thinking it is complex and a lot of hassle. This couldn’t be further from the truth, as an ISA is simply a tax-efficient wrapper for you to place your savings. TQ Invest can make investing in to an Equity ISA simple and low cost by offering substantial discounts and helpful information.
An ISA is a ‘wrapper’ for your savings and investments. Once your money has the protection of being held in an ISA, it becomes more tax-efficient, so interest or growth can be paid without UK Income Tax or Capital Gains Tax (CGT) deducted. You can’t hold an ISA with or on behalf of someone else.
There are 2 types of ISA:
- Cash ISA (TQ Invest don’t currently offer Cash ISAs)
- Stocks and Shares ISA
You can put money into one Cash ISA and one Stocks and Shares ISA each tax year.
Who can open an ISA
You must be:
- 16 or over for a Cash ISA.
- 18 or over for a Stocks and Shares ISA
- Resident in the UK
- A Crown servant (e.g. diplomatic or overseas civil service) or their spouse or civil partner if you don’t live in the UK.
Stocks and Shares ISAs can include:
- Shares in companies
- Unit trusts and investment funds
- Corporate bonds
- Government bonds
Jargon Buster: ‘Wrapper’
A wrapper is the name given to a product that savings and investments can be placed into to give them favourable tax treatment.