What is an ISA?
Individual Savings Accounts, or ISAs, provide an easy and tax efficient way for you to build up your long-term savings pot. Crucially, you have no income tax or capital gains tax liability on investments held within an ISA. These tax savings mean your money can work harder, potentially boosting long-term returns.
Key facts about ISAs
- You can invest up to £11,280 in a Stocks and Shares ISA in the current tax year (2012/13).
- The whole £11,280 can be invested into a Stocks and Shares ISA, or it can be split, with up to £5,640 available to be invested into a Cash ISA.
- At the end of the tax year your full ISA allowance expires and cannot be carried over to the next tax year.
- In each tax year, you can only open one new Stocks and Shares ISA. However, in the same tax year you can open a Cash ISA and a Stocks and Shares ISA with different companies as long as you don’t exceed the limits available for each.
- The amount of tax benefits offered by an ISA depend on individual circumstances and are subject to change in the future.
- ISAs do not need to be declared on your tax return, should you have to complete one.
- You must be aged 18 or over to invest in a Stocks and Shares ISA and resident in the UK for tax purposes.
Three reasons why you should invest in an ISA
- ISAs are a tax efficient wrapper for your investments – You don’t have any extra tax on the income generated or capital gains tax to pay on any investment growth. Less tax means higher potential returns for you over the long term.
- This year you can invest even more than before: for the 2012/13 tax year you can invest £11,280 and annual ISA limits are set to rise every year in line with the September retail price index inflation measure, so you can shelter even more of your savings from the taxman in future.
- ISAs mean less paperwork – Sheltering your savings from the taxman means there is no need for complex capital gains tax calculations, and you don’t need to mention your ISA investments in your tax returns.
Suitability
You should, of course, only consider investments that are right for you. If you are in any doubt about the suitability of an investment, please speak to an independent financial adviser - find an IFA at unbiased.co.uk.
Why the J.P. Morgan ISA
J.P. Morgan offers a wide range of investments which you can hold in an Individual Savings Account to help you develop an investment strategy that is suitable for your needs.
Find out more about the J.P. Morgan ISA.
Sharing our investment views with you
Watch edited highlights of our recent client event, featuring "A Guide to the Markets" from Tom Elliott, Global Strategist, J.P. Morgan and an interview with triple Olympic Gold Medallist, Ben Ainslie.
Please remember that the value of investments and the income from them can go down as well as up, and you may not get back the full amount invested. The tax benefits and liabilities will depend on individual circumstances and may change in the future.
Past performance is not a guide to the future.