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ISAs

Since their inception, Personal Equity Plans (PEPs) and Individual Savings Accounts (ISAs) have formed a complementary part of our investment management services. Following regulatory changes by HM Treasury, PEPs are now classed as Stocks & Shares ISAs. On the 6th April 2008, JM Finn & Co Ltd. merged individual PEP and ISA accounts into single Stocks & Shares ISA accounts.

JM Finn & Co offer a useful consolidation service in which you may transfer any external ISAs (cash or Stocks & Shares ISAs) into our care and management. Please speak to your usual contact for further details.

In considering this, you will need to weigh the benefits against any fees and expenses which your current managers may levy and whether it would be acceptable to you should their terms require the transfer to take place in cash. This would lead to additional costs and exposure to any adverse market movement during the transfer period.

The JM Finn & Co ISA can be invested in stocks and shares and should usually be viewed as an extension of a broader portfolio.

ISAs continue to be free from capital gains tax and higher rate tax payers are not required to pay any further income tax on any dividend income.

Key Changes

Effective 6th April 2008

  • New Structure and Limits - The mini/maxi distinction has been removed. ISAs will now be known as Stocks & Shares ISAs and Cash ISAs. The annual subscription allowance has increased to £7,200. Up to £3,600 of that allowance can be saved in a cash ISA with one provider and the remainder of the £7,200 allowance can be invested in stocks and shares with either the same or another provider.
  • Transfer of Cash ISAs - Investors can transfer money saved in previous tax years from Cash ISAs to Stocks & Shares ISAs without affecting their annual ISA investment allowance. Investors can also transfer money saved in the current tax year in Cash ISAs to Stock & Shares ISAs. Such transfers must be the whole amount saved in that tax year in the Cash ISA up to day of transfer. The subscription made to the current Cash ISA, once transferred will be classed as a Stocks & Shares subscription. The investor can then save up to the full remaining balance of their £7,200 annual ISA investment in ISAs in that tax year, including up to £3,600 in a Cash ISA. If you wish to transfer your Cash ISA to JM Finn & Co please contact your usual contact for further details.
  • Re-classification of PEPs - All Personal Equity Plans (PEPs) have been re-named as Stocks & Shares ISAs. They are now subject to the ISA rules. On the 6th April 2008, JM Finn & Co merged their PEP accounts with their Stocks & Shares ISA accounts to create the one account.
  • Child Trust Funds - Child Trust Fund accounts will be allowed to roll over into ISAs on maturity. This will be subject of future consultation before the first CTF accounts mature in 2020.

Effective from 6th October 2009

  • New Limits - From 6th October 2009, the ISA Subscription limit will increase to £10,200 for anyone eligible to invest in an ISA who was born on or before 5th April 1960. (i.e. who will be aged 50 or over during the current tax year). Up to £5,100 of the new ISA allowance can be saved in a cash ISA with one provider. The remainder of the £10,200 can be invested in a stocks and shares ISA with either the same or another provider. Alternatively, the full £10,200 can be invested in a stocks and shares ISA with one provider.
  • Documentation required - If you have completed an ISA subscription for the current tax year, you will not be required to complete a new ISA subscription form if you decide to top up your ISA to take advantage of the increased limit.

Effective from 6th April 2010

  • New Limits - The ISA limit will increase to £10,200, up to £5,100 of which can be saved in cash for all ISA investors aged 18 or over. (The limit for investors aged 16 and 17 will rise to £5,100.) From 6th April 2010, all investors aged 18 or over will therefore be able to deposit £10,200 into their 2010-2011 ISA, up to £5,100 of which can be in cash.

JM Finn & Co provide twice yearly valuations, with a choice of income being accumulated within the account or distributed to your bank account quarterly or half-yearly.