Stock ISA

A Stock ISA works in exactly the same way as a normal share dealing (nominee) account. However, any investment within the Stock ISA wrapper is not subject to capital gains tax. In other words if an investor purchases shares in company ABC within a stock ISA and subsequently ABC shares double in value, the investor will not need to either declare or pay any capital gains tax on the sale.

This is obviously a huge potential benefit which is why the Government restricts the amount that can be invested into such a product. The annual allowance varies from year to year and so for the current year’s allowance, please speak to your advisor.

It should be remembered that making a disposal or sale of assets within the stock ISA is absolutely fine provided that the funds remain within the wrapper. However, you should be careful before you take any funds or shares out of an ISA because you cannot put them back without using that particular year’s allowance.

Stock ISA accounts can be transferred from one broker to another in species. That is to say that you can transfer either an entire ISA or part of an ISA (i.e. specific investments within an ISA) from one broker to another without losing your tax benefits.

If you wish to retain the tax advantages the important thing is to remember not to take the funds out of the tax wrapper.

More information on ISA’s

Receive Latest News

Risk Warning - All investments carry risk and prices may change quickly. The value of your portfolio can go down as well as up. Past performance will not necessarily be repeated and is no guarantee of future success. You should carefully consider in light of your financial resources whether investing in stocks and shares is suitable for you. This notice cannot disclose all of the risks and other significant aspects of investing in equities, derivatives, bonds or any other investment product. A full list of risks will be provided for the products which you are interested in. For more information please contact one of our team.