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Investments

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ISA Guide

Your guide to simple, tax-efficient savings

Our guide will help you to understand how you can save and invest tax-efficiently with an ISA.

The value of stocks and shares investments and the income from them can fall as well as rise, and you may not get back the full amount you invest. Any tax treatment and/or reliefs referred to are those applying under current legislation, which may change, and their availability will depend on your individual circumstances. The favourable tax treatment of ISAs may not be maintained.

Most normal savings accounts and investments are taxed so the tax man gets some of your interest, or investment growth.

Individual Savings Accounts (ISAs) are different, because you don't pay tax on the interest on savings or the capital gains on investments. An ISA is simply a way of preventing too much of your money from going to the tax man and giving your finances a real boost.

There are two types of ISA a Cash ISA and a Stocks and Shares ISA.

From 1 July 2014, new ISA rules come into force that means that you can transfer any ISA, whether it is Cash or Stocks and Shares to any other ISA type. All ISA’s will become known as New ISA’s (NISA’s) within which you can hold both Cash and Stocks and Shares.

The government does limit how much you can put in an ISA each tax year. For details of the allowance for this tax year, please go to www.hmrc.gov.uk/rates

Whether you like saving in cash, stocks and shares or a combination of both, there's an ISA out there for you. However if you don't use your ISA allowance in each tax year, you will lose it.

Cash ISAs

A cash ISA is a lot like a regular savings account - except you don't pay any tax on your interest.

This makes a real difference to your savings, helping your money to grow.

How much can you save?

From 1 July 2014, new ISA rules come into force that means that you can transfer any ISA, whether it is Cash or Stocks and Shares to any other ISA type. All ISA’s will become known as New ISA’s (NISA’s) within which you can hold both Cash and Stocks and Shares.

The government does limit how much you can put in an ISA each tax year. For details of the allowance for this tax year, please go to: www.hmrc.gov.uk/rates

Moving your cash ISA

If you have a cash ISA with another bank or building society, you can complete a transfer application form and we will transfer this to another cash ISA with NatWest, when you transfer the funds; you keep all the tax benefits.

However, if you withdraw money from a cash ISA, you lose the tax benefits on the funds you've withdrawn. The only way you could reinvest into a cash ISA is to take advantage of the ISA allowance that you haven't used.

Our stocks and shares ISAs give you the potential for higher levels of growth than cash ISAs.

However, remember that the value of stocks and shares and any income from them can fall as well as rise and you may not get back the full amount of your original investment.

Investing for the medium-to-long term

A stocks and shares ISA is designed to give you a tax-efficient return over years, not months. So although you can access your money at any time, you should consider this a medium to longer term investment for five years or more.

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How much can you invest?

From 1 July 2014, new ISA rules come into force that means that you can transfer any ISA, whether it is Cash or Stocks and Shares to any other ISA type. All ISA’s will become known as New ISA’s (NISA’s) within which you can hold both Cash and Stocks and Shares.

The government does limit how much you can put in an ISA each tax year. For details of the allowance for this tax year, please go to www.hmrc.gov.uk/rates

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A choice of investments

We offer a range of investments that can be invested into your stocks and shares ISA, some with advice and some that you can select without any advice.

Our investments provide you access to a wide range of assets, including shares, government securities, corporate bonds, tracker funds and structured products.

Q. Who can have a cash ISA?

A. Anyone who is resident in the UK, as well as being 16 or over can have a cash ISA. For a stocks and shares ISA, you need to be 18 or over.

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Q. How much can I put in an ISA?

From 1 July 2014, new ISA rules come into force that means that you can transfer any ISA, whether it is Cash or Stocks and Shares to any other ISA type. All ISA’s will become known as New ISA’s (NISA’s) within which you can hold both Cash and Stocks and Shares.

The government does limit how much you can put in an ISA each tax year. For details of the allowance for this tax year, please go to www.hmrc.gov.uk/rates

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Q. How many ISAs can I have?

A. You can only have one cash ISA and one stocks and shares ISA per tax year.

If you already have a cash ISA with another provider you can choose to transfer your ISA to NatWest.

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Q. When does the tax year start and finish?

A. The tax year runs from 6 April until 5 April the following year.

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