The Individual Savings Account, or ISA, is simply a tax-efficient ‘wrapper’ into which one or more of the following ISA components may be placed:

• The investment component - also known as the ’stocks & shares’ component, this section of an ISA may include Unit Trusts, Gilts, Corporate Bonds, Individual Company Shares, and OEICs
• The cash component - may include bank or building society deposits, National Savings and cash Unit Trusts

The great attraction of the ISA is that it is virtually tax-free. Any gains you make on the money you invest in an ISA are free from tax. The only part of an ISA that is taxed is any dividend that is paid from the stocks and shares in the ISA fund. This is not something that should trouble you, it is dealt with by the investment company and the effects are relatively small.

Interest from cash ISAs, and Corporate Bonds & Gilts held in an investment ISA, will be free from income tax.

Even if you are a higher rate taxpayer, you will not have to pay Income or Capital Gains tax on your ISA proceeds. You do not even have to mention ISAs on your tax return.

The Torquil Clark Fund Supermarket offers a new approach to investment ISAs, allowing investors to “mix ‘n match” funds from 55 investment managers all within the one ISA wrapper. This compares with normal investment ISAs that only offer you the choice of one fund manager’s range of funds.

Apply Now >>