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Individual savings accounts (ISAs) were introduced by the Government in 1999 as a form of a tax efficient 'wrapper' for savings which replaced PEPs and TESSAs. Launched to encourage people to save for the future, ISAs allow investors to save and invest without incurring Capital Gains Tax on equity investments.
What is an ISA?
An ISA, or an individual savings account, is simply a wrapper that protects the savings you hold within it from further tax. If you are 18 years of age and born on or after 6 April 1960 the allowance is £7,200 and up to £3,600 of that allowance can be saved in a Cash ISA. If you were born on or before 5 April 1960 the allowance is £10,200 and up to £5,100 of that allowance can be saved in a Cash ISA. This means that providing you do not exceed either of the permitted allowances above, if you wish, you are able to split the amounts between a Stocks & Shares ISA and a Cash ISA. A Stocks & Shares ISA and a Cash ISA do not need to be held with the same ISA provider.
If you are aged 50 or over during the current 2009/2010 tax year you are eligible to invest up to the new ISA limit of £10,200 (see table below).
These new higher limits will apply to all eligible ISA investors (that is, 18 years of age and over) with effect from 6 April 2010.
What are the tax benefits of an ISA?
- No further tax is paid on any income you receive from your ISA savings and investments.
- No tax is paid on the capital gains arising on your investments.
- You do not have to include any ISA investments on your tax return.
Please note that tax benefits may be subject to change in the future.
ISA Transfers
You can transfer your ISAs from one provider to another whenever you want. You may transfer:
- Your total current year ISA subscriptions (and any income arising from your investments) and/or,
- All or part of previous years ISA subscriptions (and any income arising from your investments). Important points to consider on ISA transfers:
- Money saved in Cash ISAs can be transferred into Stocks & Shares ISAs, however Stocks & Shares ISAs cannot be transferred into Cash ISAs.
- You can transfer part or all of your Cash ISAs from previous tax years into Stocks & Shares ISAs, with your present or another provider, without affecting your current annual ISA investment allowance.
- You can transfer money saved in a current tax year Cash ISA into a Stocks & Shares ISA, with your present or another provider. Such transfers must be for the whole amount saved in that tax year up to the day of the transfer. Once such a transfer has been made you are free to save up to £3,600 (£5,100 for those over 50) in another Cash ISA, or the annual limit of £7,200 (£10,200 for those over 50) in a Stocks & Shares ISA.
- You can transfer some or all of your investments held in Stocks & Shares ISAs from previous tax years to a Stocks & Shares ISA with another provider. You will need to choose a Stocks & Shares ISA provider with whom you want to hold your ISA and then ask the new provider to set up the transfer.
- You must not withdraw the money and transfer it to a new Stocks & Shares ISA yourself, as this will count against your current annual ISA investment allowance.
Jupiter ISA investment limits
The maximum and minimum investment limits are shown below:
Jupiter
Product |
Lump sum maximum
per product |
Lump sum
minimum
per fund |
Monthly maximum
per product |
Monthly
minimum
per fund |
Lump sum top-up minimum
per fund |
Unit Trusts
(18 years of age and over) |
There is no limit |
£500 |
There is no limit |
£50 |
£250
|
| Jupiter Stocks & Shares ISA |
£7,200 |
£500 |
£600* |
£50 |
£250
|
| Jupiter Cash ISA |
£3,600** |
£500 |
£300* |
£50 |
£250
|
| Jupiter Stocks & Shares ISA (eligible limit if born on or before 05.04.1960) |
£10,200 |
£500 |
£850* |
£50 |
£250
|
| Jupiter Cash ISA (eligible limit if born on or before 05.04.1960) |
£5,100** |
£500 |
£425* |
£50 |
£250
|
ISA Transfers
(for all eligible investors) |
There is no limit |
£500 |
N/A |
N/A |
N/A
|
*The amount shown assumes 12 monthly payments are in a tax year.
**This amount forms part of the overall ISA limit of either £7,200 or £10,200 depending on your age.
Please note that if investing into the income units of either the Jupiter Distribution Fund or Jupiter Monthly Income Fund the minimum investment level is £5,000. If you wish to invest in either of these funds on a monthly basis you must select accumulation units.
Downloads
To apply for a Jupiter Stocks & Shares ISA or Cash ISA download the application form and Key Features (incorporating the Simplified Prospectus) using the links below.
Stocks & Shares ISA Application Form 2009/2010
Cash ISA Application Form 2009/2010
Key Features (incorporating the Simplified Prospectus)
Tax rules may change in the future. The value of a Stocks & Shares ISA may fall as well as rise and you may get back less than you invested. It may also be affected by exchange rate variations. Before making an investment decision you should consult your Independent Financial Adviser (IFA).
Please note: The Jupiter Unit Trust ISA and Jupiter Investment Companies ISA have separate management companies. This means you cannot invest in an ISA through Jupiter in both unit trusts and investment companies within the same year.