Full ISA Guide Discussion Area

System

t.i.c.h. wrote: »

£85K is for deposits but my understanding is that equity ISAs count as investments which is only £50K

You may be correct, I'm not sure

The only mention that I could find for investment ISAs on the FSCS website says:

Q: How much am I covered for if I have a Maxi ISA?
A: Maxi ISAs have an investment element so they would be subject to the £50,000 investment limit. It is important to note that we generally look through tax wrappers (e.g. ISAs, PEPs, Tessas etc.) when assessing claims. The wrapper is not the important part. The real questions are whether the underlying product falls within a protected claim (e.g. a deposit) and whether the firm in default owes the claimant a civil liability.

k8needshelp

Hello, Is it possible to create an ISA in the husband AND wife's names, i.e. a joint ISA? If yes, has it always been possible?
Thanks!

Ark_Welder

k8needshelp wrote: »

Hello, Is it possible to create an ISA in the husband AND wife's names, i.e. a joint ISA? If yes, has it always been possible?
Thanks!

Not possible - must be in sole name only. See 'Can anyone pay into an ISA?':

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/SavingsAndInvestments/DG_4016062

t.i.c.h.

Some reassuring advice from another money website: -
"You're right that the FSCS only covers up to £50,000 per investment firm, so in a worst case scenario your investment wouldn't be fully covered. However, the risk is not that high because your money is held within a unit trust, meaning if [the Company] went bust your money should be separately ring fenced, hence safe unless they've illegally dipped their fingers into the fund. So I wouldn't worry too much, but on the basis we can never say never it's probably a good idea to split the money with at least one other firm to ensure you're fully protected by the FSCS."

AJ_tree81

My husband has some SAYE shares which are maturing shortly and he needs to open a Stocks & Shares ISA to put the excess shares over our CGT allowances into, the rest of the shares will be given to him as shares only, outside of the S&S ISA wrapper. Question is, we have to let his company know the value he would like to subsribe to in the ISA before the selling price of the shares is known and it's likely to be under the maximum ISA limit for the tax year, so I understand the calculations but I don't know what happens if the value of the shares is less than we said we wanted to subscribe to, surely we want to maximise the amount of shares that go into the ISA?

Cherryjack

Hello,

im new to the whole isa scheme.. i havent a clue in the basics... please could someone answer a few questions..

After april next year if i put £5000.00 into it.. and leave it and then the year after put another £5000.00 into that years allowance.. what happens?

Do i get an upto date statement from the bank saying i have then £10,000 in savings? and if say i pull £2000.00 after the two years is that instant to get hold of? I know i cant then re-invest for that year but would have to wait until the next year..

Also would i have interest applied as well as it being tax free? is the money safe? i wouldnt want to the investment part.. just the savings bit really.

Thanks.. sorry to sound some dumb!:-)

le_loup

Look at the top of this page and you will find a full explanation of ISAs. Here is the link:
http://www.moneysavingexpert.com/savings/ISA-guide-savings-without-tax

Cherryjack

le_loup wrote: »

Look at the top of this page and you will find a full explanation of ISAs. Here is the link:
http://www.moneysavingexpert.com/savings/ISA-guide-savings-without-tax

Thank you, ive read this but it still didnt answer my questions :money:

pqrdef

Cherryjack wrote: »

After april next year if i put £5000.00 into it.. and leave it and then the year after put another £5000.00 into that years allowance.. what happens?

Do i get an upto date statement from the bank saying i have then £10,000 in savings? and if say i pull £2000.00 after the two years is that instant to get hold of?

Yes, if it's an instant access account. All the main types of savings accounts - instant access, restricted access, fixed-term bonds etc - have ISA equivalents. So what you can do with the ISA depends on which type of savings account it is. Statements, interest etc will work like a non-ISA account of the same type.

The main differences with ISAs are

(1) there's an annual limit to how much you can pay in

(2) the interest is tax-free, so if it says 3% you get 3%, whereas with other accounts you would get 2.4% and the taxman would get the rest

(3) to keep the tax break, you have to follow the ISA transfer rules when moving money between ISAs.

mrsalbion

I'm confused, and haven't found a thread which answers my particular question, as they all seem to relate to transfers.

I had a cash ISA, into which I have paid money during this financial year (though nowhere near the maximum allowance) but when its bonus rate came to an end a couple of months ago I closed it to pay off our mortgage :j. Can I now open a new ISA and pay in cash up to the balance of my annual ISA allowance?

By way of explanation, at the time I closed the old account, I didn't think I'd be in a position to save any more this year, but I've now decided it would be a good idea to open a new flexible ISA as a better deal than my bank savings account even if the cash can't stay there for the long term (I'd be looking at a couple of withdrawals a year for major annual expenses). I looked at the Northern Rock application form but the words "you can only subscribe to one Cash ISA in each tax year" are confusing me. Obviously you can only hold one ISA at any given time but this implies that as I have subscribed to one, I can't open another, and the transfer rules obviously don't apply.

Reassurance please before I fall foul of the tax man!