Q: What is an Individual Savings Account (ISA)? Q: Am I eligible for an ISA? Q: What is the difference between a Cash ISA and a Stocks & Shares ISA? Q: How much can I contribute to an ISA? Q: What are my annual ISA allowance options? Tax Year\t2011\/2012 Q: I have used all my annual Cash ISA allowance for this tax year. Can I still contribute more? Q: How many ISAs can I have? Q: What is a Junior ISA? The value of these investments and the income from them can go down as well as up and you may not get back your original investment. Past performance is not an indication of future performance. Tax benefits may vary as a result of statutory change and their value will depend on individual circumstances. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts.<\/p>\n","protected":false},"excerpt":{"rendered":" Your questions answered<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"_links":{"self":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/1542"}],"collection":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1542"}],"version-history":[{"count":0,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/1542\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.suretyfp.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nA: <\/strong>ISAs were set up to give you tax advantages on your savings and investments. There are two types of ISA: Cash and Stocks & Shares. You can earn interest free of UK income tax with a Cash ISA and interest free of UK income and capital gains tax with a Stocks & Shares ISA.<\/p>\n
\nA: <\/strong>To open an ISA you have to be aged
\n16 or over if the ISA is a Cash ISA or 18 or over if the ISA is a Stocks & Shares ISA. You have to be resident and ordinarily resident in the UK for tax purposes, or a Crown employee, such as a diplomat or a member of the armed forces, who is working overseas and paid by the government.<\/p>\n
\nA:<\/strong> A Cash ISA is like a normal savings account, but you don\u2019t have to pay UK income tax on your interest, provided all ISA conditions are met. Some Cash ISAs are offered as a fixed-term or fixed-rate account.
\nA Stocks & Shares ISA allows you to purchase investments in a \u2018tax-efficient\u2019 manner \u2013 your returns are free of UK Income and Capital Gains Tax. As your money is invested directly or indirectly in stocks and shares, the value of your investment can rise or fall so you could end up with less than you invested. The tax credit on an ISA dividend is not recoverable.
\nThe Stocks & Shares ISA wrapper lets you invest in funds that have no fixed maturity date, although they are designed to be held for the medium to long term (usually five to ten years). Their value at any particular time will always depend on how well the underlying investments perform, so if this has been poor it could be less than the original amount you invested, irrespective of how long you have held the investment.<\/p>\n
\nA: <\/strong>Your annual ISA allowance is \u00a310,680 in the 2011\/2012 tax year. Of this, up to \u00a35,340 can be saved in a Cash ISA with one provider. All of your allowance or the remainder can be invested in a Stocks & Shares ISA. Bear in mind that the value of tax relief depends on individual circumstances and tax rates are subject to change; if you don\u2019t pay tax, you will not benefit from any tax relief. Annual limits are also subject to review and the government\u2019s favourable tax treatment of ISAs may not be maintained.<\/p>\n
\n<\/strong>A:<\/strong> Individual Savings Account Subscription Limits<\/p>\n
\nCash ISA Limit\t\u00a35,340
\nStocks & Shares ISA Limit\t\u00a310,680
\nTotal ISA Limit\t\u00a310,680<\/p>\n
\nA: <\/strong>As your total ISA allowance is \u00a310,680, if appropriate, you could still invest a further \u00a35,340 in a Stocks & Shares ISA.<\/p>\n
\nA: <\/strong>There is no limit on the number of ISAs you can hold, but you can only open and subscribe to one Cash ISA and one Stocks & Shares ISA per tax year. This could be a Cash ISA with one provider and a Stocks & Shares ISA with a different provider, or both with the same provider. However, be sure that you don\u2019t exceed the maximum amount you\u2019re allowed to put into ISAs each year.<\/p>\n
\nA: <\/strong>A Junior ISA is a tax-efficient way to save for a child\u2019s future and can be set up in the child\u2019s name by a parent or guardian. You can set up a Stocks & Shares ISA or Cash ISA or a combination of both and any investment growth is free of UK income and capital gains tax. The annual investment limit is currently \u00a33,600, but this will rise in line with inflation from 2013. The money is locked away until the child reaches the age of 18, giving the investment time to grow. The child is the beneficial owner of the Junior ISA. Children are not eligible for a Junior ISA if they have or were eligible for a Child Trust fund. \u03bd<\/p>\n