Individual Savings Account (ISA)

An ISA is a tax-efficient wrapper; which, due to its favourable tax treatment, can potentially provide added flexibility to an investment portfolio.

Investments held within an ISA are shielded from capital gains tax and also benefit from favourable income tax treatment, as there is no further income tax payable within an ISA; higher-rate taxpayers do not pay any additional income tax, whilst investments that pay gross income do not attract any income tax at all. Therefore, any disposals made within an ISA, or income received, does not have to be included in a tax return.

For clients who use the full ISA allowance each year, an ISA could therefore, over time, provide a large tax-efficient savings pot, which could be drawn on when needed without the worry of tax implications. Furthermore upon death, the value of an individual’s ISA may also be ‘subscribed’ to a surviving spouse’s ISA. Such a subscription would retain its tax-efficient status, and could significantly increase the size of the ISA pot, potentially providing the surviving spouse with an even greater degree of flexibility from their investments.

As a client of Barratt & Cooke your ISA would be managed together with your other investments; you will receive a valuation of your portfolio in April and October each year, together with any income generated.

If you would like to discuss whether an ISA is for you, or indeed, have existing ISAs that you would like to transfer to us to be managed ‘under one roof’, please feel free to ask your investment manager, who will be pleased to offer assistance.