Personal Business Home Log in Search Menu What is a stocks and shares ISA? Find out how an investment ISA works, and whether it's right for you... On this page What is a stocks and shares ISA? The tax benefits of an investment ISA Stocks and shares ISA rules Different types of stocks and shares ISA Is a stocks and shares ISA right for you? Stocks and shares ISAs from Wesleyan Group Frequently asked questions What is a stocks and shares ISA? A stocks and shares ISA is a tax-friendly wrapper that lets you use your annual ISA allowance (£20,000 for 2021/22 tax year) to buy shares, fund units or other types of investment. While a cash ISA earns you interest on your savings, a stocks and shares ISA aims to generate greater returns through dividends and capital appreciation (the value of your investment going up). As per ISA rules, any potential gains you make from your investment are protected from UK tax. Bear in mind, the value of investments can go down as well as up. You could get back less than what you put in. The tax benefits of an investment ISA Like all types of ISA, a stocks and shares ISA brings significant tax advantages – particularly for higher-rate tax payers. That's because there's no tax to pay on any growth or income you earn through a stocks and shares ISA, and no capital gains tax on your returns either. Outside of an ISA wrapper, dividends of more than £2,000 would be taxed at 32.5% for higher-rate taxpayers and 38.1% for additional-rate taxpayers. So it's potentially a big saving if you have a lot of money invested. While many people may not earn dividends of £2,000 a year (or indeed pay the higher rates of tax), investing through a stocks and shares ISA still helps to protect your pot as it grows - future-proofing your savings should you later hit the threshold. Is a stocks and shares ISA right for you? A stocks and shares ISA might be suitable for you if you are... Happy to take a risk in search of greater rewards An investment ISA can help grow your pot faster than cash savings, but does expose you to the risks of the stock market. Willing to invest for a minimum of five years Most stocks and shares ISAs aim to deliver growth over the medium to long-term, so it’s best for money you don’t need to access in the short-term. For tailored advice on the best savings or investments options for you, book an appointment with a Wesleyan Financial Services Consultant. Stocks and shares ISA rules Each tax year (6th April to the following 5th April), there's a certain amount of money you can invest in an ISA. For the tax year 2021/22, that limit is £20,000. You can put your full allowance in a stocks and shares ISA, or split it across several different types of ISA. For instance, you could put half in a cash ISA, and half in stocks and shares. Just note that you can only pay into one of each type of ISA in a tax year. So you can't contribute to two different stocks and shares ISAs at the same time. If you've already started saving into one investment ISA and want to open a new one in the same tax year, you'll have to transfer all your existing savings to the new provider. Your remaining allowance will transfer across too. Of course, you don't have to use your whole £20,000 allowance. Just be aware that any allowance you don't use won't roll over to the next tax year. Different types of stocks and shares ISA Not all stocks and shares ISAs are the same. Some will invite you to pick your own investment portfolio, while others (like Wesleyan's With Profits ISA and WUTM's Unit Trust ISA) are invested in funds that are managed on your behalf. That means you don't have to be an experienced investor to set up a stocks and shares ISA. The research, analysis, trading and admin is taken care of by the Fund Manager. Whatever type of stocks and shares ISA you choose though, you'll almost always have to pay charges. There might be an initial fee to pay when you open your account, plus a management charge which is taken from the value of your investment every year or month. Management charges can either be in percentage terms or a fixed fee, so just make sure you're clear on how the fees might impact your investment. FAQs Who can open a stocks and shares ISA? How many stocks and shares ISAs can I have? Can I transfer a cash ISA to a stocks and shares ISA? How do I withdraw money from a stocks and shares ISA? Stocks and shares ISAs from Wesleyan Group Wesleyan Group offers two stocks and shares ISAs – the Wesleyan With Profits ISA and WUTM’s Unit Trust ISA: With Profits ISA Wesleyan's With Profits ISA is a stocks and shares ISA which aims to balance out stock market volatility through a process called 'smoothing'. Find out more and apply Unit Trust ISA from WUTM The Unit Trust ISA from Wesleyan Unit Trust Managers allows you to invest your annual ISA allowance in a choice of six managed funds. Find out more and apply Back to top Products & services Financial advice Savings & investments Pensions & retirement Protection Mortgages Insurance Business For your profession Dentists Doctors Teachers Useful information About us News Insights Students Wesleyan Bank Practice Plan DPAS Medenta Financial advice that's all about you Wesleyan Financial Services Consultants help doctors, dentists and teachers achieve their goals through specialist financial advice. Book an appointment Contact us Careers Sitemap Privacy Legal Security Accessibility Modern Slavery Act Cookies 'WESLEYAN' is a trading name of the Wesleyan Group of companies. 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