Tax planning and trusts are not regulated by the Financial Conduct Authority.
Different types of asset-backed investments include:
- Gilt-edged Securities (Gilts)
- Friendly Societies
- Unit Trusts
- Individual Savings Accounts (ISAs)
- Investment Trusts
- Open Ended Investment Companies (OEICs)
- Investment Bonds
Rates and allowances refer to 2018/19 tax year.
Individual Savings Accounts (ISAs)
ISAs remain one of the most tax efficient solutions for your savings. On 1 July 2014, several restrictions were removed to improve flexibility and transfer options.
Under the so-called New ISA (or NISA), Cash ISAs and Stocks and Shares ISAs have effectively been merged, with the overall limit increased to £20,000. This can be invested in either Cash, Stocks and Shares, or a mixture of both.
You’ll also be able to transfer new and previous years’ ISA investments from Stocks and Shares into Cash, and vice versa, as opposed to previous rules which restricted cash ISAs being transferred into Stock and Shares ISAs.
As of Autumn 2015 individuals may be able to withdraw money from some (flexible) cash ISAs and replace it in the same year without it counting towards their annual ISA subscription limit for that year. Please check with your provider.
Deposit Based Investment
There are various deposit-based investment vehicles available in the marketplace. Many customers will have money on deposit either with a bank or building society.
Every basic rate taxpayer in the UK now has a Personal Savings Allowance of £1,000. This means that the first £1,000 of savings interest earned in a year is tax-free. If you are a higher rate taxpayer (40%), then your allowance is £500, and 45% taxpayers have no savings allowance at all.
The Financial Conduct Authority (FCA) does not regulate national savings & investments product or deposit based investments.