The Aviva ISA is an investment ISA offered by Aviva PLC. Aviva is a British multinational company with its headquarters in London which offers a range of financial services.
Stocks and Shares ISAs
Stocks and Shares ISAs, which are also referred to as investment ISAs, are a kind of Individual Savings Account which supplies a tax efficient wrapper for some or all of an individual’s ISA allowance. The money contained within the ISA wrapper can then be invested into a variety of qualifying investments such as: Funds, Bonds, Stocks and Shares.
Any gains made from investments within the ISA do not incur Capital Gains Tax (CGT). Dividends are subjected to Income Tax of 10% at source however there is not any further Income Tax to be paid upon them.
As stocks and shares ISAs are capital at risk products which involve an element of risk and the value of your investments can go down as well as up, this means you could get back less or none of the sum you originally invested.
Selecting an investment ISA
You are only allowed up open up to one investment ISA within a tax year, although it may be possible to transfer. It may therefore be wise to first shop around different ISAs and providers, to try and find a product that best suits how you want to invest, different accounts will have different features and operating requirements.
You can use the table on this website to compare different kinds of ISA from a variety of providers and by following the links you can find out more information or apply.
Alternative ISA types
Another distinct category of Individual Savings Accounts are Cash ISAs, this type of account works similarly to regular bank or building society savings account, the chief difference being that interest which accumulates on the money contained within the account, up to the maximum ISA allowance, is paid tax-free. This type of account is normally capital protected and covered by the Financial Services Compensation Scheme (FSCS).
Individuals are allowed to open both a Cash ISA and Investment ISA within the same tax year, however they will need to divide their overall ISA allowance between their different ISAs so they do not exceed it this can be done so at a ratio of their choice however.
Other types of ISA include: Innovative Finance ISAs, Help to Buy ISAs and Lifetime ISAs.