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With their special tax allowances, ISAs are a good way to make your money grow tax-free.
There's no capital gains tax (CGT) and any income tax payable has already been deducted, so even if you're a higher rate tax payer, you've nothing more to pay. Of course, the precise value of these advantages to you will depend upon your individual circumstances, and the basis on which they are applied and the level of the allowances can change.
Underneath, our ISAs work along the same lines as our Share Account, giving you a straightforward way to buy and sell stock market investments.
There are certain investment restrictions you need to be aware of. For example, the HM Revenue & Customs' regulations restrict the range of shares, unit trusts and investment trusts you can hold in an ISA. However our service helps you to avoid the pitfalls, and we're on hand with answers to your questions and advice to help you pick the shares that are right for you.
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getting started
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The maximum you can invest in an ISA each tax year is £7,200 and you can invest this in a couple of ways: put all of your allowance in a stocks and shares ISA, or if you want you can split it and put up to a maximum of £3,600 into a cash ISA, with the remainder going into the stocks and shares element.
However, if you decide to put less into your cash ISA you can then use the remainder of your allowance in your stocks and shares ISA.
For example:
If you put £2,000 into your cash ISA, you can still use your remaining allowance of £5,200 in a stocks and shares ISA.
How you split your overall ISA allowance is up to you (subject to the £3,600 cash ISA maximum), please note that it is your responsibility to ensure you have not exceeded the total ISA allowance of £7,200.
The Share Centre does not provide Cash ISAs.
You can only have one stocks and shares ISA in any one tax year, so if you've a partially subscribed stocks and shares ISA already for the current tax year you can't open a second one. But you can transfer your existing stocks and shares ISA to us and then top it up before the end of the tax year.
To open a new ISA just choose which type you want and select the 'open account' tab and you'll find everything you need.
Once you apply we'll open your account immediately. You do still, however, have the right to cancel your application within 14 days without affecting your ISA allowance for that tax year.
If you've already got an ISA elsewhere and want to transfer it to The Share Centre, you can. This might be to combine existing accounts with your new ISA so that you can manage all your ISA investments together, or just to ensure you can take advantage of the wide investment choice and control that an ISA provides.
Either way, just tick the 'transfer' box on the 'open account' page, enter details of your existing account provider and we'll provide all the forms you need to arrange the transfer. How long it takes to receive your investments or cash balance depends on your existing provider.
Bear in mind that, during the transfer period, you will not be able to pay in to your account or make any sales or purchases. Equally, some providers will insist you sell investments and transfer your ISA as cash and this could mean a loss of income or growth following a rise in the market. Since share prices can change during the transfer period time, you could also find yourself at a disadvantage through not being able to add money or deal on your account during this time. Your existing provider may also make a charge when you transfer.
All your investments are held in a 'nominee' name - Share Nominees Limited, a separate company within the Share plc group that exists purely to act as 'trustee' for customers' holdings. Being in nominee name enables us to act on your instructions, whether that's to sell your shares quickly and easily, or to handle other events, such as those described in 'Changes to your investments'.
And of course you are always the beneficial owner. Naturally, your investments are safe and secure and they are covered by the Financial Services Compensation Scheme.
To open your account just go to the 'open account' tab and follow the instructions. Or you can print off an application form, complete it and send it to us and we'll confirm your new account and, if you're not already a customer of The Share Centre, your internet PIN and further account details.
Of course, if you've any questions you can email us or call us free on 0800 800 008 from 08:00 to 18:00 Monday to Friday. We'll be pleased to help.
As an account holder you'll have direct access to your account and to our plain-speaking experts for practical advice on choosing the shares that are right for you.
Once your new ISA is up and running you'll be able to sign in and check the up-to-date value of your investments, buy and sell investments whenever you want, and monitor income on dividends, sales etc.
Your account has various in-built features to help you monitor and manage your investments more easily:
set up separate accounts for different purposes, perhaps even to mirror investments you hold elsewhere
keep an eye on investments you might be thinking of buying, by adding them to a ShareWatch account
seek our Advice team's view on different companies - where we've published a view on shares you hold in your account; there's a direct link to their assessment
call our Advice team to speak direct with our experts for everything from their latest views on individual shares to a complete review of all your stock market investments
research investments direct from your account, with access to comprehensive information, news and opinion
see how the value of your investments has changed since you bought them, with the profit/loss shown against each different investment
get a free copy of our regular investment magazine, The Shareholder, packed with news, views and information, plus tips from our Advice team.
receive a half-yearly account statement.
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paying in
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You can choose whether to pay in all of your annual ISA allowance in one go by lump sums or regular monthly amounts. Whichever you choose, you can then take time to choose your investments so long as you are actively seeking to invest your money.
When you choose the monthly investment option you can either leave your cash in your ISA to invest as and when you want, or ask us to buy investments each month. Changing your investments is easy once you've made your initial selection. Just call or email us with details and we'll make the necessary changes.
And you can increase the amount you invest each month, so long as the total paid in doesn't exceed your annual allowance. All it takes is a call or an email.
You can also add to your DIY ISA shares you already hold as certificates. There are some restrictions and unless your shares have come from an Approved Employee Share Scheme within the last 90 days, you will need to sell them, pay the proceeds into your ISA and then buy them back. To help you with this we provide a special 'switching' service which means you'll only pay dealing commission on the original sale. We'll carry out the re-purchase free of our normal dealing commission charge (though you will still have to pay the government's Stamp Duty levy at the normal rate and there may be a difference in the prices at which you sell and re-purchase).
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withdrawing money
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Once you've withdrawn money from your ISA you cannot pay it back in if you have fully subscribed in the current tax year: so you will want to ensure it is the right thing to do.
This also applies to income from your investments, so if you are looking to build-up your capital, rather than withdraw it, the income re-investment option might prove particularly useful.
When you do withdraw money from your account, we'll normally pay it straight to your bank account. That way it's faster, easier and more convenient as you don't have to wait for a cheque to turn up and then pay it in to your bank. Income from your investments can be automatically paid to your bank account each quarter.
If you do need a cheque we can send you one. For your security, cheques will always be payable to the account holder. There is usually a small charge for this service, although withdrawing income on a quarterly basis by direct transfer to your nominated bank account is free of charge. You'll find full details in 'Costs'.
When you choose to have income from your investments paid out each quarter; we'll add up all the dividends and other income you receive in that period and credit them direct to your bank account.
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buying shares and other investments
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Give us your purchase instructions online or over the phone, and your order can be dealt straightaway. Or you can give us your dealing instructions by, post, fax or email, and have your order handled along with those of other customers in one of three dealing sessions each day.
When you buy unit trusts (including our Preferred Funds) the actual purchase will normally be made at noon. Our dealers will let you know if a different timescale applies.
You can place orders at any time for immediate dealing. You can also place an order outside market hours, to be dealt shortly after the market opens. And our dedicated dealing lines are available from 08:00 to 18:00 each day to take your dealing instructions.
Our dealers aren't able to advise you, but you can speak to our Advice team about your purchase. Also, bear in mind when placing your order that investments can go down as well as up in value and, when you later come to sell them, you may get back less than you originally invested. And unless you've chosen fixed interest investments, the income you get from your investments can also vary.
When you give us your purchase instructions we'll buy investments to the amount of cash available in your account, including the value of any sales which have not yet settled.
The stock market opens at 08:00 and closes at 16:30 each market day, so dealing instructions received outside these hours will be dealt shortly after the market re-opens. If you place an order when the market is closed, it is generally a good idea to set a price limit as share prices can fluctuate quite widely when the market opens.
When dealing you can choose whether to deal straightaway or wait to have your order dealt alongside those of other customers in our batch dealing sessions.
Batch dealing starts at £2.50 for each purchase whereas realtime purchases start from £7.50. So for smaller value purchases the batch option can be cheaper. You'll find full details in 'costs'.
The batch sessions take place three times a day, from 09:00, 13:00 and 16:00, and when you choose this option you should be aware that, because your shares will be bought alongside those of other customers, the price you get may not be the same as when buying them immediately. To allow time to process your order, each batch session closes five minutes before it takes place. The market may also quote a different price because of the larger number of shares being bought together. The price you pay could, therefore, be higher or lower than if your shares had been bought on their own.
While the batch option gives you a lower commission level than the realtime option on purchases under £750, it does mean you will not know the exact price of the shares you've bought until later in the day. And if the share price is likely to move before the next batch dealing session you may want to weigh-up the cost saving against that potential change in the price.
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selling shares and other investments
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You can deal straightaway when you place your sale orders direct from your account online or by phone. If you give us your dealing instructions by post, fax or email your deal will be placed in the next batch dealing session.
When you sell unit trusts (including our Preferred Funds) the actual sale will normally be made at noon. Our dealers will let you know if a different timescale applies.
Our dedicated dealing lines are available from 08:00 to 18:00 each day. The stock market opens at 08:00 and closes at 16:30 each market day so dealing instructions received outside these hours will be dealt shortly after the market re-opens.
Our dealers aren't able to advise you on your sale, so do bear in mind when placing your order that the price may now be lower than you originally paid.
When dealing you can choose whether to deal straightaway or wait to have your order dealt alongside those of other customers in our batch dealing sessions. Either way, the minimum sale commission is £7.50, so you just need to decide when you want your deal to take place. You'll find full details in 'costs'.
The batch sessions take place three times a day, from 09:00, 13:00 and 16:00, and when you choose this option you should be aware that, because your shares will be sold alongside those of other customers, the price you get may not be the same as when selling them immediately. To allow time to process your order, each batch session closes five minutes before it takes place. The market may also quote a different price because of the larger number of shares being sold together. The price you get could, therefore, be lower or higher than if your shares had been sold on their own.
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price limits
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When you buy or sell shares you can choose to set a price limit. This ensures you only buy if the market price is no higher than the price you are prepared to pay, or you sell shares only if the market price is at least what you're prepared to sell them for.
You can set a buying or selling price limit at the same time as you give us your dealing instructions, either online or via our dealers. There's no charge for monitoring these limits for up to 365 days.
Price limits can be set for both immediate and batch dealing, and you may renew or amend them as often as you need, free of charge.
While sale or purchase price limits are the most popular type of limit used, there are more advanced limit types you can use, giving you tighter control over buying and selling shares.
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advanced limit types
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The basic price limit options ensure that, when buying or selling shares, you only trade when you can do so at the price you've set, or better. Advanced options give you even more control over buying and selling your investments.
Stop-Loss limits - to limit potential losses on a share you've just bought, or to protect gains on shares you hold already.
Use a Stop-Loss limit to restrict potential losses on a share you've just bought, or to protect gains on shares you hold already. Rather than monitor the price continually, set a Stop-Loss trigger and your holding will be sold should the price fall to or through the level you set.
Tracking Stop-Loss limits - gives you the added advantage of being able to lock-in profits should a share price start to fall back.
Add a Tracking Stop-Loss limit and you've even more control. Here you set the criteria and we track the price as it rises, locking-on to the peak price, and will automatically sell if it falls to or through the limit you set.
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extra features
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Alerts - when a share price meets your limit, we'll let you know by email, so you can decide whether or not to act. You can also choose to simply highlight the fact in your online account, or ask us to do both!
Profit/Loss indicators - showing the current gain/loss compared to your acquisition cost
Sector analysis - the quick way to check the spread of your investments across the different market sectors.
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changes to your investments
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From time to time events may take place that affect your investments. This could be a takeover of one company by another, a merger between two businesses, an opportunity to buy more shares at a special price (a rights issue) or any other change that affects your shareholding. Collectively these types of event are known as 'corporate actions' and we will handle them for you.
We'll explain the event that is about to take place, ask for your instructions and then carry them out on your behalf.
In some cases you will be asked to vote - in the event of a take-over offer for instance.
In other cases you'll be able to choose whether or not to take up an offer - as with a rights issue for instance.
And on other occasions the change may be applied automatically to your shareholding, as in the case of a 'split' in the shares, when the company is seeking to reduce the price of an individual share in order to make it more affordable for smaller shareholders.
Whatever the event our Corporate Actions team will let you know about it, explain your options and ask for your instructions.
We'll then monitor the event and, when the time comes, carry out your instructions. For a rights issue you can choose to:
take up the rights by buying more shares. You can only use cash available in your ISA account to do this, or any unused subscription. Alternatively you could sell some of your shares to fund the purchase of the rights
sell those rights and have the proceeds credited to your account
transfer the nil-paid rights outside your ISA and then accept the offer. This is outside your ISA - particularly useful if you want the shares but have used up your ISA allowance and you don't want to sell other investments.
For a takeover you can accept the offer and have the proceeds paid into your ISA.
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