Sharedealing ISA questions

For the current Tax Year, first direct shares offers a Stocks and Shares ISA. It is a self-select ISA in which you choose the individual investments to be held within your ISA. For more information please visit our Stocks and Shares ISA page.

You must be an individual, aged 18 or over, who is either resident in the UK or working overseas as a Crown employee or married/in a civil partnership to such a person. In addition, you must not have subscribed to another ISA in the current Tax Year.

In each Tax Year you can subscribe to one Stocks and Shares ISA and one cash ISA. first direct shares offers a Stocks and Shares ISA only. For more information please visit our Stocks and Shares ISA page or our Cash ISA page.

Because of their great tax advantages, ISAs are subject to annual subscription limits. From 1 July 2014, the overall ISA subscription limit has increased to £15,000 for the tax year ending 5 April 2015 (any subscriptions made to an ISA between 6 April 2014 and 30 June 2014 will count towards the £15,000 limit):

• you can subscribe up to £15,000 into a cash ISA; or
• you can subscribe up to £15,000 into a stocks and shares ISA; or
• you can subscribe up to a total of £15,000 in part to a cash ISA and in part to a stocks and shares ISA in such proportions as you choose.

If you have an ISA and then move abroad the benefits will continue to accrue in your absence; however you will not be allowed to make any further contributions.

This will be opened for you when you either apply on line for a first direct Stocks and Shares ISA or you transfer an ISA from another financial institution.

No. An ISA cannot be opened in joint names or on behalf of another individual.

Yes, you can use your tax-free allowance by subscribing to a first direct Stocks and Shares ISA.

Our ISA is self-select - you choose which investments to put in your ISA.

You can even transfer any existing ISAs to us.

There are no annual fees, no management fees and no transfer fees on the Stocks and Shares ISA although individual Investments funds placed within the Stocks and Shares ISA may incur charges. Please refer to 'Frequently asked questions' within the Investment funds section for further detail.

We will collect any dividends paid on the investments held in your ISA and credit them to your ISA settlement account.

Normally, income from UK shares is paid with a dividend tax credit. The tax credit can not be reclaimed regardless of whether the shares are held directly, or within a collective investment. This applies whether an investment is within or outside an ISA. Outside an ISA, lower and basic rate tax payers have no further income tax liability, but higher rate tax payers will have additional income to pay. However, if held within an ISA, all investors, including higher rate tax payers, have no further liability to income tax. By investing in an ISA you are also protected from paying any Capital Gains Tax on increases in the value of your investment.

Yes. To view details about our rates please visit our Stocks and Shares ISA rates page.

Interest on cash held within the stocks and shares ISA is subject to a flat charge levied by HM Revenue and Customs, which is currently 20%.

Yes. Just complete a transfer form. You'll find the form in the 'ISA' section of the 'products and services' page. You can print the form, then complete it following the instructions on the page. Once we receive your form we will liaise with your current ISA manager to complete the transfer.

We will accept all Stocks and Shares ISAs. You can instruct us to arrange with your current ISA manager to either transfer your shares to us or to sell these and transfer the settlement proceeds. Please note - your current ISA may contain investments which are not traded by first direct. These investments will need to be sold and the proceeds transferred as cash if you want to transfer your ISA to us.

Both the shares and cash must pass directly from your current ISA manager to us; they must not be transferred out of the ISA.

In order to transfer existing securities you will need to arrange to sell your existing investments and buy them back within the ISA. However, you can transfer shares obtained through certain work-related schemes to your ISA and the market value of these on the date of the transfer will count as a subscription to your ISA.

Yes. The easiest way to transfer cash between your settlement accounts with first direct shares is to select 'my portfolio' then 'move money - between accounts'.

Select the accounts you want to transfer money between from the dropdown boxes. All the accounts to which you are a party (i.e. your sole account and any joint accounts you hold) will be included in the dropdown boxes. Enter the amount you want to transfer and if you want, you can enter an optional statement description of up to 24 characters that will be displayed with the other details of the transfer on the 'view transfer history' screen. The transfer will take place and any funds will be available to trade with immediately.

Surplus cash may be held in an ISA pending a suitable investment opportunity. You will receive interest on the money that is being held for investment purposes. However, for cash held in a Stocks and Shares ISA there will be a 20% charge applied by HM Revenue and Customs on this earned interest.

HM Revenue and Customs regulations state that we will write to notify you of any uninvested cash held within the ISA.

No. All dealing charges must be taken from within the ISA.

You can transfer some or all of the money you have saved in previous Tax Years without affecting you current Tax Year's annual ISA investment allowance.

You are also able to transfer money saved in the current Tax Year. Such transfers must be the whole amount saved in that Tax Year in that cash ISA up to the day of the transfer.

Yes - provided you haven't already used up your annual ISA investment allowance.

• When you transfer your current year cash ISA subscription to a Stocks and Shares ISA it is as if that cash ISA subscription had never existed. Any money you subscribed in the current Tax Year up to the date of transfer will be treated as if you had invested that money directly to the Stocks and Shares ISA.

Exactly the same way as you would transfer your ISA to another ISA manager at the moment. You must not withdraw the money and invest it in your Stocks and Shares ISA yourself, as it will count against your annual ISA investment allowance.

Yes.

Yes. The rules on transferring like-for-like ISAs between providers are not changing.

• For example, you can still transfer your Stocks and Shares ISA held with one provider to first direct Stocks and Shares ISA, without affecting your annual ISA investment allowance.

• You must not withdraw your investments from a Stocks and Shares ISA and re-invest them in another Stocks and Shares ISA yourself, as it will count against you annual ISA investment allowance.