The personal investment service

General enquiries: 020 7739 8200  /  Become a client: 020 7149 6437  /  Media site

Keep subscribing up to the statutory limit every year to build up your tax-efficient portfolio

Keep subscribing up to the statutory limit every year to build up your tax-efficient portfolio

How the Charles Stanley Stocks and Shares ISA Works

Once your account is set up and in credit, you can buy securities and if you sell them at a profit there will be no Capital Gains Tax liability (note that, conversely, you can't take advantage of capital losses, either). There is no minimum holding period; in theory, you can withdraw all the proceeds immediately. You can keep subscribing up to the statutory limit every year to build up your tax-efficient portfolio.

If you opt to make your own investment decisions, we keep you informed of any corporate actions requiring a decision and will execute your instructions accordingly. Corporate actions with no element of choice, such as bonus issues, are
automatically accepted on your behalf.

Your securities remain in your beneficial ownership, although they cannot be registered directly in your own name. This means that you have no direct contact with the companies whose securities you hold, but arrangements can be made to forward company documents to you, or lodge proxies, on request.

What happens about cash balances?

From time to time you may have cash balances in your ISA pending a suitable investment opportunity. Uninvested cash in your ISA will earn interest that is subject to a flat rate 20% payment to HM Revenue & Customs. There is no higher rate charge, so no details have to be included in your tax return.

Subscriptions and employee shares

Existing securities that you may hold can be sold to fund your subscription and then repurchased within your ISA. To maximise your tax concession on such transactions, with UK securities we generally waive our normal commission on the purchase. In addition, the fact that their sale is counted as a disposal for tax purposes means that such sales can usefully contribute to your overall tax planning strategy.

You can transfer shares from an approved Employee Share Scheme directly into your ISA, free of Capital Gains Tax, within 90 days of the exercise of option. The value of any shares transferred will count towards your annual subscription limit.

Withdrawals from your ISA

You are free to withdraw all or part of your cash balance at any time, on giving us written instructions. You can also transfer securities out with no liability to Capital Gains Tax. However, once removed, you cannot put investments or cash back into an ISA, to the extent that this would take your subscription above the annual limit.

Keeping you informed

We will provide you with a valuation of your ISA at least twice a year. Reports on our managed funds are also available from the Charles Stanley OEIC administrator, twice a year on request. You may also monitor your ISA portfolio through our secure online client area.

Changes in your circumstances

Should you decide to close your ISA and withdraw your investments, the tax benefits will cease from that point. There are certain alterations to your personal circumstances that may affect your ISA, for example if your residency status changes. Once your account is established, please keep us informed of anything that may affect the declaration you signed in the application.

Dividend collection

Dividends and fixed interest payments that accumulate from your investments are entirely free of any further UK tax. You can either leave your income to accumulate or choose to have income paid to you monthly, quarterly or twice yearly. Whichever option you select, you will receive statements showing details of these payments.

We would like you to become our client..

You should consider seeking advice on the suitability of subscribing to an ISA, as this will depend on your individual circumstances. Current legislation suggests that an ISA may be less suitable for you if you are a nil or low-rate tax payer. Investors should be aware that the price of shares and other investments, and the income derived from them, may fall as well as rise and the amount realised from an ISA may be less than the original sum invested.