ISA & Junior ISA
An Individual Saving Account (ISA) is one of the simplest and most tax efficient investment vehicles available, providing protection against income and capital gains tax.
Blankstone Sington can help utilise the tax free allowance of a Stocks & Shares ISA wrapper, either as an independent portfolio or as part of a client’s investment strategy, ensuring maximum benefit by managing, advising on or simply executing transactions in the most efficient investments within the tax-free shelter.
It is important to understand that ISAs are not strictly investment products but rather a tax free wrapper in which to place investments, be it shares, bonds or cash. The income tax savings available from the wrapper are considerable – especially for higher and additional rate taxpayers – which over a number of years can have a powerful compounding effect on investment returns. The sheltering of capital gains can also be particularly useful for avoiding tax in future years.
Junior Individual Saving Accounts (JISA) were launched in 2011 to replace Child Trust Funds (CTF). From a tax perspective they work in the same way as a normal ISA though the maximum amount you can subscribe to annually is lower. JISAs are available to all children under 18 except those that currently hold a CTF (impacting those born between September 2002 and January 2011). When a child reaches 18 the JISA transfers to an adult ISA and becomes fully accessible to the child.
As ISA managers and administrators since inception, we make the establishment of an ISA or JISA, as well as the transfer to ourselves of ISAs from other managers, simple.
Significant changes were announced in the 2014 budget that increased the opportunity for investors to benefit from tax free savings:
- A wider range of investments held such as Alternative Investment Market (AIM) investments and bonds with a maturity less than 5 years.
- Cash can be held in a Stocks & Shares ISA with interest received no longer subject to 20% tax.
- Flexibility to transfer savings between cash and Stocks and Shares (both ways).
ISA Allowances 2018/19
Stocks & Shares ISA – £20,000
JISA – £4,260
Our application forms and information on charges can be downloaded Here.