Alliance Trust ISA
Alliance Trust PLC is an investment and financial services company that offer the Alliance Trust ISA. Established in 1888, Alliance Trust is headquartered in Dundee; it is one of the largest public companies based in Scotland and is a member of the FTSE 250 Index.
About Stocks and Shares ISAs
Stocks and shares ISAs, also known as investment ISAs are a kind of Individual savings account that provides a tax-efficient wrapper that allow the account holder to put up to their maximum annual ISA allowance into various types of qualifying investments, which can include: the stock market, unit trusts as well as government and corporate bonds.
The ISA provides a tax-efficient wrapper for investments within it, meaning that any gains made from investments are not subject to Capital Gains Tax (CGT). Dividends incur a 10% Income Tax reduction at source but there is not further income tax to pay upon them.
As Stocks and Shares ISAs involve a level of risk, it is important to remember that the value of investments can go down as well as up and as such you can get less than you originally invested.
Choosing a Stocks and Shares ISA
Investment ISAs are offered by a range of different providers. It may therefore be wise to shop around different providers before opening account to find one that best fits how you want to invest. Remember that you can only open one investment ISA in each tax year; however you may be able to transfer to another provider.
You can use the table on this website to compare different kinds of ISAs from a selection of providers and click on the links to find out more information or apply.
Other types of ISA
Cash ISAs are another distinct category of ISAs, which are more like traditional savings accounts offered by banks and building societies. With a Cash ISA the money deposited in the account accumulates interest, usually at fixed or varied interest rate. The key difference however is that this interest is paid tax free.
You are permitted to open both a new Investment and ISA and Cash ISA within the same tax year. However, if you opt to open both accounts you will need to break up your overall ISA allowance so as not to exceed it, this can be done at a ratio of your choice.
The eligibility criteria for an investment ISA requires that account holders are:
- At least 18 years old.
- And are a resident of the United Kingdom, or a Crown Servant or the spouse/civil partner of one if you do not live in the UK.
Providers may implement their own specific requirements for one of their ISAs however such as a minimum opening deposit.