Tax Wrappers Flashcards
ISAs
What are the age limits for the following ISA types?
- Cash ISA
- Stocks & Shares ISA
- Innovative Finance ISA
- Help to Buy ISA
- Lifetime ISA
- Cash ISA - 16 years +
- Stocks & Shares ISA - 18 years +
- Innovative Finance ISA - 18 years +
- Help to Buy ISA - 16 years +
- Lifetime ISA - 18 to 40 years
ISAs
During the year your client and their partner invest £7k each in ISAs.
They had £60k each in ISAs at the start of the year.
If the wife dies, how much can the husband invest in a new ISA before the end of the year?
How much can he invest in a new ISA next year?
He has £8,240 left of his own allowance.
His wife had £67k of ISAs in total when she died so he can invest that amount in a new ISA.
So in total he can invest £75,240 in a new ISA.
Starting next year his allowance continue at £15,240 as it always was.
ISAs
What can you put into stocks and shares ISAs?
Pretty much anything!
- Any listed shares, including AIM;
- Gilts issued by EEA countries;
- Listed corporate bonds;
- Any UCITS qualifying investment (e.g. unit trusts)
- Life assurance policies.
ISAs
What is a stakeholder ISA?
What are the AMC limits?
ISA for poor people with restrictive rules to protect them.
AMC is limited to 1.5% for the first 10 years, then 1% afterwards.
ISAs
What are the rules around ISA transfers?
ISA managers must allow transfers out (no rule forcing them to accept transfers in).
You can do a partial transfer of ISAs from previous years (which could add up to a large value) but if transferring a current year ISA (£15,240 max) you have to do the whole lot.
Child Trust Funds/Junior ISAs
Brief description
Limits
Age rules
Child Trust fund was the old system which has been replaced by Junior ISAs.
Both are limited to £4,080 contributions per year.
Person becomes “responsible” for the account at age 16 but can’t withdraw until they are 18, when it reverts to a normal ISA.
