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An ISA is, simply, a tax efficient savings vehicle for British residents.
There are two types of ISA: the mini ISA and the a maxi ISA. Each ISA may contain either cash, stocks and shares or life assurance. We will not talk about life assurance in this section.
Mini ISAs: Each individual can invest up to £3,000 in cash (like a normal bank account) or stocks and shares in the current tax year. Investors are entitled to take out one of each kind of mini ISA each year, from either the same of different providers, giving a total investment "allowance" of £6,000 per tax year.
But, an investor contributing to a mini ISA cannot buy a maxi ISA in the same year.
Maxi ISAs: Each individual can invest up to £7,000, of which a maximum of £3,000 may be cash. However, the entire £7,000 can be invested in stocks and shares. Investors with a maxi ISA cannot contribute to another maxi ISA or a mini ISA in the same tax year. Investors are also restricted to only one product provider per tax year.
How do stocks and shares ISAs work? Each fund manager offers a number of different funds, based on geographical region (such as the UK, Europe and North America…) and business sector (communications, technology, financial services…). With literally thousands of different possibilities our expertise can help identify the correct fund manager and fund(s) for you.
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