What is an ISA?

An ISA, or Individual Savings Account, is a tax efficient savings plan. You can wrap it around an investment and any gains that the investment realises become protected from the taxman.

What can you save with an ISA?

There are two types of ISA, the Stocks and Shares ISA and the Cash ISA. The amount that you can invest in an ISA in this tax year is  £11,280. You can invest the full amount in a stocks and shares ISA or you can invest half of your allowance (£5,640) in a Cash ISA and then the balance can then be invested in a Stocks and Shares ISA.

What are the tax benefits?

The most tax-efficient way of investing in any of the trusts available on Witan Wisdom is within an ISA. The ISA wrapper allows you to protect any capital growth that you make from capital gains tax. For higher rate tax payers there is also an income tax benefit in that dividend income within an ISA is paid net of basic tax, higher rate tax payers do not have to pay the additional income tax because ISAs do not have to be declared to the Inland Revenue.

Why consider a Witan Wisdom ISA?

• You can choose to invest in either Witan Investment Trust or Witan Pacific Investment Trust, or both if you wish
• The annual management fee for ISAs is just £30 per annum (plus VAT) flat fee, irrespective of how many ISAs you hold or how many of the trusts you are invested in
• Witan Wisdom offers live online dealing and valuation functionality
• We also offer telephone and postal dealing
• Our dealing charge of 1% (minimum of £1.25) or £15 flat fee for online dealing is very competitively priced

Click here for more information on how to open a Witan Wisdom ISA account.

Tax assumptions may change if the law changes, and the value of tax relief (if any) will depend upon your individual circumstances. Investors should consult their own tax advisers in order to understand any applicable tax consequences.