Individual Savings Accounts (ISAs)
The ISA is usually the first port of call for the first time investor. It is a tax efficient ‘wrapper’ that can be placed around a wide range of cash savings and stock market based investments.
It is usually made up of a portfolio of equity based investments (stocks and shares or collective funds). You don't pay tax on the dividends from an ISA, apart from the 10 per cent tax credit which is deducted from dividend payments prior to receiving them. You also don't pay Capital Gains Tax on gains (profits) from investments in an ISA.
The aim of an investment ISA is to attempt to try and grow your money at a higher rate than inflation. Of course, sometimes that doesn’t happen, but over time the market usually beats the building societies or banks.
There is now such a wide range of firms offering ethical ISAs that it is important to take advice from an ethical specialist.
There are two types of ISA - you may have one of each if you would like – however, you can only have one of each in a particular tax year. There are limits as to how much you can contribute each year – click the links for more information..
Having money in a cash ISA means that you will not have to pay tax on your interest. So any cash savings should really be in a cash ISA. We can advise you the banks which have a good ethical policy. Although a building society that is mutually owned is often preferred to a bank owned by shareholders.
Again, when moving into the world of investment, ISAs are usually the first place to go. With a very wide range of ethical ISAs it is important to take advice.
ISA holders pay no tax on the capital gain of their investment, nor do they pay tax on the income.
We are happy to advise you on an ISA which has an ethical policy suited to you.
