Investments - SEO page - Stocks & Shares ISAs

Stocks & Shares ISAs

Stocks and shares ISAs are a tax-free home for your savings. The ISA accounts listed below either track performance of stock markets, like the FTSE 100, or are a basket of investments managed by a provider. Either way, the idea is you don’t need to be actively monitoring things every single day.

If you would prefer to be more hands on, and pick your own stocks and shares, see our Self-select ISAs page

Share dealing is risky. To get the most out of the stock market you should really be thinking about investing long term. If you can’t tie up your money for five or more years, a savings account is probably more appropriate for you.

Understand the Risks. The value of your investment and the income derived from it can go down as well as up and you may get back less than you originally invested. The tax advantages of ISAs may change in the future and also depend on your individual circumstances.

 

MoneySuperMarket doesn’t offer a comparison service for this type of product but we have compiled a list below of providers who can help

Stocks & Shares Featured Providers

    • Provider/Product name Stocks and Shares ISA

      Fidelity

      Stocks and Shares ISA

    • Product Details

      As a leading investment company, Fidelity aims to give you the best ISA savings, great choice and a level of expertise you won’t find anywhere else.

      The Fidelity Price Promise: If you find a fund for less from our main competitors, we'll refund the difference. Terms & Conditions apply
      • Quick and easy account opening and fund selection with Fidelity's online tools
      • One low cost service fee, no additional charges on over 2,000 investment options from more than 75 providers when you buy direct with Fidelity’s fund supermarket. Fund management charges still apply
      • Monthly savings from £50 per month
      • Easy online ISA purchase and 24/7 online account management

      ISA eligibility and tax rules apply. All tax rules may change. Capital at risk. Fidelity doesn't give advice

    • Go to site

    Price Promise

    Fidelity Price Promise: If you can find it for less with one of our main competitors, we’ll refund the difference. T&Cs apply. Capital at risk.

    • Provider/Product name Stocks and Shares ISA

      Nutmeg

      Stocks and Shares ISA

    • Product Details

      • Nutmeg are more than just a fund. They intelligently build and manage an investment portfolio tailored to your goals, all inside a tax-free ISA wrapper
      • Nutmeg make it easy for you – you tell them your investment goals; they take care of the rest
      • Nutmeg strive for great net returns
      • Nutmeg believe in complete transparency – you can sign in to your secure online account 24/7 to see where your money’s invested and how it’s performing
      • Nutmeg believe in fair cost – you’ll pay just one management fee of between 0.3% and 1% including VAT
      • Nutmeg’s shareholders boast exceptional experience. They include renowned British economist John Kay and seasoned digital investment group Pentech
      • You can set up a new ISA and transfer existing ISAs. Top up and withdraw whenever you want

      *Performance returns are simulated using actual Nutmeg trading data from customer accounts, based on an account size of £25,000, after fees. Past performance is not a reliable indicator of future performance.

    • Go to site

    • Provider/Product name Stocks & Shares ISA

      Virgin Money

      Stocks & Shares ISA

    • Product Details

      • Virgin Money offers a choice of 3 funds that can be held in a Stocks and Shares ISA
      • Choose between the FTSE Tracker Fund, Climate Change Fund and Bond & Gilt Fund, or a mixed investment between all 3
      • Customers already have over £1.7 billion invested in Stocks and Shares ISAs with Virgin Money
      • In the current tax year you can invest up to £11,880. You can either invest it all in a Stocks and Shares ISA or invest up to £5,940 in a Cash ISA, with the remainder in a Stocks and Shares ISA
      • Boost your tax-friendly savings with a Stocks and Shares ISA by investing a lump sum or by saving regular monthly amounts
      • UK based Customer support team - on hand to answer your questions
      • There is no minimum term. Stop, start, increase or decrease your payments at any time
      • Low Annual Management Charge(s) from 1%
      • Remember, the value of your investment can go down as well as up and you may not get back the amount you invest. This is a medium to long term investment so you should be prepared to invest your money for at least 5 years.

    • Go to site

    • Provider/Product name Protected Housa

      Castle Trust

      Protected Housa

    • Product Details

      Potential return of 100% of any rise in Halifax House Price Index (no cap). Simulated average annual return of the 5 year Protected Housa since the inception of the Halifax Index (1983) – 7.2% p/a

      Investment term - 5 Years

      Counterparty Castle Trust Capital

      Product is designed to be held for the full term

      The objective of the Plan is to provide a full repayment of capital at the end of the five year term, plus a return of 100% of any rise of the Halifax Index. Capital protection only applies if you hold the investment to its maturity. The investment is available for Stocks and Shares ISA, ISA Transfer, Direct Investment as well as SIPP pension investments. It is also available for businesses, charities and trusts.

      Eligible for the Financial Services Compensation Scheme up to £50,000 per investor

    • Go to site

    Limited offer - deadlines apply. May close early if oversubscribed. Plan designed to be held for the full term. Arrangement fees can apply. Returns not guaranteed. You may only receive a return of your original capital

Are you an existing Cofunds customer? You can login to your Cofunds account here to access investments you previously made via MoneySupermarket.com

Stocks and shares ISAs explained

The typical interest rate on a cash ISA is currently about 1.2% - that’s less than the rate of inflation. So it’s perhaps not surprising that many people are thinking of putting money into a stocks and shares ISA. 

Many investors are also keen to kick-start their stocks and shares ISA at the start of the new tax year on April 6. 

But the ISA rules are changing from July 1. The annual tax-free allowance will go up from £11,880 to £15,000. Plus, there will be greater flexibility on investments and transfers. The new tax year starts on April 6, so the July date is a bit odd. The reason for the delay is to give ISA companies time to adjust. 

But what happens to ISAs between April and July?

Existing rules

Basically, the rules stay the same until July 1 when ISAs become New ISAs (NISAs). So, at the moment, you can invest up to £11,880 in a stocks and shares ISA. If you want to put money into a cash ISA (up to the present maximum £5,940), you can put the balance (up to £11,880) into a stocks and shares ISA between April and July. 

Annual allowance

Any money you pay into a stocks and shares ISA between April 6 and July 1 will count towards your annual £15,000 allowance for 2014-15. So, after July 1, you will be able to top up if you wish by paying into your existing account, or by switching to a different stocks and shares New ISA. Alternatively, you could open a cash NISA. 

Let’s say you put the full annual allowance of £11,880 into a stocks and shares before July. When the rules change on July 1, you could add a further £3,120 (£15,000 - £11,880) to your stocks and shares account. Or you could open a cash NISA and deposit up to £3,120. 

If you had instead contributed £1,000 to a cash ISA and £5000 to a stocks and shares ISA in the weeks leading up to July, you could add to either account on July 1, as long as you did not exceed the overall limit of £15,000. So, you could put an additional £9,000 into your cash NISA, or £4,500 into each account to bring you to the £15,000 limit. It’s entirely up to you how you divide the allowance.    

Range of assets

A stocks and shares ISA offers the potential for higher returns than a cash deposit and you can invest in a broad range of assets including shares, bonds, commercial property and commodities. But stocks and shares ISAs are riskier than cash plans. If the stock market crashes or the property market implodes, you could lose all your money, including your original stake.  

Some ISAs are riskier than others: an investment in emerging markets is likely to be more volatile than government gilts. You should therefore pick a scheme that reflects your appetite for risk. 

And don’t forget that a stocks and shares ISA is a long-term investment of, ideally, at least five years. This period of time should hopefully enable you to ride out the ups and downs of the market.

Self select ISAs

Most people opt for an ISA run by an experienced manager, but others prefer to take control of their investments with a self-select ISA. It’s worth bearing in mind, however, that self-select ISAs are really only suitable for experienced investors with a full awareness of and stomach for the risks involved.  

Tax shelter

The big advantage of a stocks and shares ISA is, of course, the shelter from capital gains tax (CGT). You would normally pay CGT on any profits above £10,900 a year when you sell, but assets in an ISA are free from CGT. 

Dividend tax

The tax situation is a little more complicated if the shares in your ISA pays dividends, as 10% tax is automatically deducted from any dividends – ‘at source’, as the saying goes –  whether the shares themselves are held inside or outside an ISA. Investors cannot claim back the tax, so there is no dividend tax advantage to holding shares in an ISA if you are a basic rate taxpayer. 

However, higher and top-rate payers do not have to pay any additional dividend tax on their ISA share dividends, so they still stand to gain.

ISA charges

Watch out for charges on stocks and shares ISAs. Some funds levy an initial fee of up to 5%, plus an annual management charge of around 1%, which can eat into investment returns. You might also have to pay an adviser’s fees on top. But if you don’t need advice, you can probably buy your funds cheaper though a discount broker or a fund supermarket.

Compensation scheme

The Financial Services Compensation Scheme covers ISA investments up to £50,000 if your ISA manager should go bust. But remember, the FSCS does not compensate for poor performance.

 
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