Individual Savings Account - ISA

Individual Savings Accounts (ISA) are a saving scheme established by the Government that will provide tax advantages on savings. Two types of ISA exist - a Cash ISA and Stocks and Shares ISA. Interest earned in a Cash ISA is free of UK income tax whereas in a Stocks and Shares ISA dividends are taxed at a flat rate of 10% and no further income and capital gains tax is payable on investments held.

The ISA limit for the current tax year (commencing 6 April 2011) is £10,680 of which up to £5,340 can be invested in Cash. Under current rules the ISA limits will be increased in line with the Retail Price Index on an annual basis. The annual allowances rules and limits change so please contact us for up to date information.

Only Stocks and Shares ISA's are available through First Equity Limited. To qualify for a Stocks and Shares ISA you must be a UK resident, Crown employee, member of the UK armed forces and aged over 18 years or over.