Here we seek to address some frequently asked questions about the Vantage Stocks & Shares ISA.
If you're unable to find what you're looking for, please do not hesitate to phone us on 0117 900 9000 or email us.
You can transfer money from your Fund & Share Account and use this to apply for a Vantage Stocks and Shares ISA one of three ways:
Please understand the risks and Terms and Conditions (including Tariff of Charges) of your investment. The specific risks of any funds are detailed in the Vantage Key Features. If you are unsure of the suitability of an investment for your circumstances seek personal advice.
The ISA allowance for the 2017/18 tax year is:
This is the maximum amount that can be paid into an ISA in the current tax year.
You can split this allowance between a Stocks & Shares ISA, a Cash ISA, a Lifetime ISA (maximum £4,000 per year) and an Innovative Finance ISA.
You can't transfer shares you already own directly into a Vantage Stocks and Shares ISA, instead they have to be sold first (crystallising any capital gain or loss), and then bought back within the ISA.
This is known as a Bed & ISA.
How to place a Bed & ISA instruction
Placing a Bed & ISA instruction is easy, and can be carried out either online or via the post.
If you hold your shares or funds in the Vantage Fund & Share Account, and have registered for online access, you can give us your instruction by logging in to your account and following the Bed & ISA link next to your holding (indicated by the blue icon with the white arrow).
Alternatively you can download a Bed & ISA form and send it into our office.
Yes, you can make regular monthly investments into FTSE 350 shares, selected investment trusts and funds in a Stocks & Shares ISA by setting up a Direct Debit, subject to a minimum of £25 per investment per month.
Setting up a direct debit instruction
It is possible to set up the instruction online, over the telephone, or by sending us an application form.
The direct debit is collected on the 7th of each month (or the next working day if the 7th falls on a weekend or bank holiday). If you have given an investment instruction, the money will then be invested on the 10th of the month (or the next working day if the 10th falls on a weekend or bank holiday).
An ISA is an individual allowance and generally the individual must pay for it themselves. However, it is possible for a third party to gift money to the ISA applicant.
We would require a completed ISA application form signed by the applicant and a cheque with a letter from the third party. We would also need the dates of birth and all addresses where any parties have lived over the last two years.
The letter must state that the third party is gifting this money to the ISA applicant for the purpose of this investment and that upon investment they will have no further claim to the money.
You can open a stocks and shares ISA with an initial lump sum and top up at a later date.
The minimum initial investment is £100, and once your ISA is open, you can top up with any amount.
Please note: The minimum lump sum investment into a fund is £100.
You can invest any amount into shares, but please consider the dealing charges before investing.
The minimum initial lump sum investment to open the ISA is £100. Once you have opened the ISA you may start investing in your choice of stocks and shares.
The minimum lump sum investment into each fund is also £100. Whilst there is no minimum investment into shares, you should consider the dealing charges before placing your trade.
It is possible to set up monthly savings from as little as £25 per investment per month.
Please note: You do not need to pay in a lump sum prior to starting a regular saving.
An ISA, or Individual Savings Account, is not an investment in its own right. The best way to think of an ISA is as a ‘wrapper’ in which you can shelter savings and investments from tax.
Within an ISA you pay no capital gains tax and no UK income tax. You don’t even need to declare ISAs on your tax return, and less tax means higher returns for you.
Best of all, it often costs no more to place cash or investments inside an ISA, so many investors receive these benefits free. Used regularly, your annual ISA allowance offers you the chance to create a substantial portfolio sheltered from the taxman, although remember tax rules can change, and the benefits will depend on your circumstances.
The cautious can simply use Cash ISAs as a secure place to hold their money. The more adventurous can invest in the stock market through a Stocks & Shares ISA in search of superior returns. You can even do both by taking advantage of an ISA’s flexibility to spread savings between different types of assets.
Your Vantage Stocks & Shares ISA can be set up to treat income in one of three ways:
The instruction you give will apply to all income paying holdings within your Vantage Stocks & Shares ISA.
Share trades are subject to our stock broking tariff, please see our ISA charges for details.
There is no charge when you buy, sell or switch funds within your ISA. All you will pay is the initial charge of the fund less any discount we offer (please refer to the factsheet of your chosen fund for more information).
Yes, you can mix and match funds offered by different fund managers within one ISA wrapper.
The Vantage Service is designed for investors who are happy to make their own investment choices. If you are unsure of the suitability of an investment please seek advice.
The Vantage Stocks & Shares ISA allows you to invest in a wide range of investments including unit trusts and OEICs, shares, investment trusts, ETFs, corporate bonds and gilts.
You can even hold cash and choose investments later.
The Vantage Service is designed for investors who are happy to make their own investment choices, but if you are unsure of the suitability of an investment, please seek advice.
Anyone who was married or in a civil partnership with someone who died on or after 3 December 2014 can now apply for an additional ISA allowance, known as the Additional Permitted Subscription (APS).
The APS is equal to the value of the ISA held by the deceased on the date of death. For example, if your spouse died on or after 3 December 2014 with an ISA valued at £50,000, this would be your APS. Where an investor held ISAs with several companies, a separate APS will be available for each.
The charge to hold funds is tiered within the Vantage Stocks & Shares ISA:
If you choose not to hold cash within your account or do not wish to use cash from within a tax wrapper (ISA/SIPP) to pay fees, you can choose to have all fees collected from the Fund & Share Account.
To choose this option:
The Suggested Minimum Cash Balance is designed to give you an idea of the amount of cash you should hold to meet the next few months’ fees, and other outgoings. However, it is just a suggestion and you can ignore it (or amend it) if you wish.
The Suggested Minimum Cash Balance provides a good guide to how much cash you could hold, but as the value of your holdings will rise and fall, so will your fees. You may wish to adjust the cash balance you hold if there is a significant change in the value of your holdings.
You can view the management fees and charges which have been applied to your account by logging in and going to the Account Administration section of each account you hold. You then simply need to click on the ‘view history of fees charged’ link.
We collect fees and charges from available cash on your account. If there is no available cash within your account, we will try to collect fees from cash you hold in your Fund & Share Account.
Our system will look to collect fees in this order:
Management fees are charged on a monthly basis and are calculated based on the value of your holdings at the end of each month. They are collected in the next month.
If there is insufficient cash on your account and in the Fund & Share Account to pay, we will sell sufficient holdings to cover the amount owed and restore the suggested minimum cash balance. There will be a charge of £1.50 per deal if an automatic sale is required.
We provide a notification service to let you know if you have insufficient cash on your accounts to pay fees due and your investments are at risk of being sold. You will then be able to add money (allowances permitting), or sell holdings of your choice to raise money, and therefore avoid your investments being automatically sold. This is an opt-in service so please set an email alert now.
The charges involved with a Bed & ISA depend on whether you are using funds, or shares and other investments.
Funds (Unit Trusts/OEICS)
There are no dealing charges for carrying out a Bed & ISA on a fund (Unit Trust or OEIC). However, due to the way funds are dealt, in most cases the re-purchase will not be placed until the following working day.
As a result, you could be out of the market whilst the sale and repurchase is carried out. There may also be a difference between the selling and buying prices and as a result you may buy back fewer units than you sell.
Shares and other investments
Providing you give your Bed & ISA instruction online or in writing, we will not charge you to sell your shares (we do reserve the right to charge £5 share dealing commission on share sales of less than £500).
The only charge will be on the re-purchase within the Stocks & Shares ISA, and will be subject to our standard dealing commission as laid out below:
For online instructions, the charge for your repurchase will be between £5.95 and £11.95 depending on the number of trades you have placed in the previous month.
Postal applications1%, minimum £20, maximum £50 per deal + 0.5% government stamp duty.
Once in the Vantage Stocks & Shares ISA, the annual management charge to hold shares is just 0.45% (maximum £45 p.a.).
You only need to give us one instruction and we will do everything for you. If you would like to use investments in your Vantage Fund and Share Account and you have online access, you can Bed & ISA your investments online.
Alternatively, if you hold certificated shares, or would just prefer to apply by post, please complete and return the relevant Bed & ISA application form.
When buying the same shares back there will be a small difference in price due to the bid offer spread. Therefore together with the commission and stamp duty this means you will not buy back the same number of shares.
Please note: We reserve the right to charge £5 commission on share sales of less than £500. When buying the same shares back there will be a small difference in price due to the bid offer spread. Therefore, together with the commission and stamp duty this means you will not buy back the same number of shares as you sold.
Yes, the following charges will apply to cover the cost of the administration:
For more information call our Helpdesk on 0117 900 9000.
Yes. You can transfer existing ISAs from other providers by simply completing a Stocks & Shares ISA transfer form.
This should be returned to us and we will then contact your existing ISA provider to arrange the transfer.
It is possible to transfer a Cash ISA to a Stocks & Shares ISA, and vice versa.
Please ensure you understand the risks detailed below first.
Unlike stock market investments, Cash ISAs offer immediate access and your capital is guaranteed (up to £75,000). Historically, stock market investments have delivered superior returns when compared with cash over the longer term, although this is not guaranteed and stock market investments can fall in value as well as rise, so you could get back less than you invest.
An ISA transfer does not count as a new ISA subscription, so if you are transferring ISAs from previous tax years, this has no impact on your ISA allowance for the current tax year.