Use it or lose it - have you taken advantage of your ISA allowance?
If you are UK resident age 18 or over, you have the opportunity to invest upto £10,200 in an Individual Savings Account (ISA) for the 2010-11 tax year. You may save upto £5,100 of this in a Cash ISA with one provider, and invest the balance of the annual subscription in a Stocks & Shares ISA with either the same or another provider. Alternatively, the full £10,200 can be invested in a Stocks & Shares ISA with one provider.
An ISA is perhaps the most flexible, tax efficient investment available at this time, the main benefits of which are summarised below together with other points you should know.
With improving economic and investor sentiment, and the probability of increased tax rates to come, it is recommended that eligible investors take full advantage of their respective ISA limits to minimise their future income tax liabilities and avoid capital gains tax.
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You Should Know; |
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No further tax to pay on income.
All gains are free of capital gains tax.
No need to declare on your tax return.
No fixed term - flexible access to your capital whenever you need.
A wide range of funds to suit every investor's attitude to risk.
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The value of tax savings and eligibility to invest in an ISA depend on individual circumstances.
Tax rules may change in the future.
This investment should be considered long-term ie. minimum 5 years.
Past performance is not a guide to future returns, which cannot be guaranteed.
The value of investments and the income from them can go down as well as up and you may not get back the amount invested.
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Drawing on our expertise as independent financial advisers we have compiled a selection of funds that we believe worthy of consideration, available on FundsNetwork our preferred ISA provider. These are categorised below to reflect the overall objectives of each fund and individual fundfact sheets may be downloaded by clicking the relevant fund below. Full details can be found in the ISA Brochure which should be read in conjunction with the ISA Key Features document.
* It is important to note that with overseas & specialist funds there is an increased risk of volatility in addition to exchange rate fluctuations. Returns may also be affected by changing political regulations and fiscal measures.
- Fund Discounts - upto 3.25% reduction on the initial charge - for details hover over fund name or refer to ISA Brochure.
- Apply Online - with payment by Debit Card (Maestro or Visa).
To apply by post download, complete and return the application or top-up application, together with cheque payable to Fidelity (RE: your name) to:
FREEPOST RRKG-RJZG-HSXS,
BALPA Financial Solutions Ltd, BALPA House, 5 Heathrow Boulevard, 278 Bath Road, West Drayton, UB7 0DQ.
This investment may not be suitable for everyone. If you are unsure as to whether this investment is suitable for your circumstances, and/or you require advice on this product, please contact us, or complete and return a BFS Fact Find.
For further information about our services please refer to our Client Agreement which should be read prior to proceeding to application. Please note that for this investment BALPA Financial Solutions Ltd will receive an initial commission of 2% of the initial deposit and renewal commission of 0.5% per annum of the on-going fund value from Fidelity eg. on an investment of £10,200 we will receive £204 plus renewal of £51 in the first year. For an explanation of your cancellation rights please refer to page 10 of the ISA Key Features.
Portfolio Consolidation - are you missing an opportunity?
All Personal Equity Plans (PEPs) became Stocks & Shares ISAs on the 6th April 2008. Further flexibility was also introduced allowing the possible transfer of Cash ISAs into Stocks & Shares ISAs without affecting your annual ISA investment allowance.
Now may therefore be the ideal time to review your portfolio of Cash and Stocks & Shares ISAs in totality and rebalance accordingly.
Existing ISA portfolios can easily be consolidated by traditional transfer or via re-registration on to a 'fund supermarket' or 'platform'. FundsNetwork, our preferred fund supermarket provider simply take over the future administration. The main benefits of consolidation are;
- A single consolidated account & statement of all your holdings, with access to over 1,100 funds and 65 fund managers, that aims to simplify administration of your portfolio.
- Fund switches may be executed for as little as 0.25% of the fund value that is moved.
- Online access to statements, plus fund dealing/switching 24 hours a day, 7 days a week.
- Security of personal data potentially enhanced as held in one place - also aids notification of any changes eg. change of address.
Re-registration
Your existing ISA holdings can often be re-registered to FundsNetwork without you having to sell and buy back the holdings. Investments are therefore never out of the market - you simply transfer the administration of them to FundsNetwork, free of charge. Through re-registration you gain a consolidated, up-to-date, easy -to-administer account.
Please contact us to check if your existing holding(s) can be re-registered and to obtain the appropriate forms. Alternatively you may check and apply to re-register online.
Transfer
Not all ISAs can be re-registered, either because funds are not yet available on FundsNetwork or the relevant investment manager does not support re-registration. In such cases portfolio consolidation is achieved by effecting a transfer to FundsNetwork, who arrange for your existing fund(s) to be sold, the proceeds transferred to them as cash and reinvested upon receipt in the funds of your choice.
Transferring has no effect on the amount you can invest in an ISA for this tax year and you will not lose the tax benefits of your existing ISA.
Should you decide to transfer any existing holdings into this plan you should be aware of the following;
- Exit penalties imposed by your existing plan manager.
- The potential for loss of income/growth, whilst the transfer remains pending.
- Initial set up charges on the new plan.
- There is no guarantee the new investment will equal or out perform that of the original.
Please contact us to check if your existing holding(s) can be re-registered and to obtain the appropriate transfer forms if not. Alternatively you may check and apply to transfer online.
This investment may not be suitable for everyone. If you are unsure as to whether this investment is suitable for your circumstances, and/or you require advice on this product, please contact us, or complete and return a BFS Fact Find.
For further information about our services please refer to our Client Agreement which should be read prior to proceeding to application. Please note that for this investment BALPA Financial Solutions Ltd will receive an initial commission of 2% of the initial deposit and renewal commission of 0.5% per annum of the on-going fund value from Fidelity eg. on an investment of £10,200 we will receive £204 plus renewal of £51 in the first year. For an explanation of your cancellation rights please refer to page 10 of the ISA Key Features.