ISAs

Important information concerning ISA investments

An Individual Savings Account (ISA) is a great way for your clients to make the most of their tax-efficient savings limit and save for the future. It is an efficient way for them to save, and has numerous benefits as there is no Capital Gains Tax to be paid on an ISA and if your clients hold any bond funds in their ISA, then any income generated would be free of income tax.

Following the budget announcement on 6 April 2011, the ISA investment limit has increased from £10,200 to £10,680 and now applies to all investors.

Now is the time to ensure that your clients make the most of the tax efficiencies of the increased ISA limits.

Investment Limits within the M&G ISA

The table below shows the minimum investment limits within The M&G ISA. The maximum you can invest is £10,680 in any one tax year (6 April to 5 April). This can be comprised of up to £5,340 in a cash ISA, with the remainder in a stocks and shares ISA, or all in the stocks and shares ISA. M&G offers the stocks and shares ISA only.

Minimum investment limits
	M&G Property Portfolio	M&G Global Convertibles Fund	All other funds
Minimum lump sum	£1,000	£1,000	£500
Minimum monthly amount	£100	£10	£10
Minimum additional lump sum	£100	£100	£100
Minimum additional monthly amount	£10	£10	£10

The M&G ISA

There are two types of ISA – stocks and shares or cash. The M&G ISA is a stocks and shares ISA. With a stocks and shares ISA:

Your client s can invest up to £10,680 per tax year.
Alternatively they can save £5,340 in one cash ISA and place the remaining £5,340 in one stocks and shares ISA.
Clients don’t have to keep their cash ISA and stocks and shares ISA with the same company.
Clients can transfer money held in a cash ISA into a stocks and shares ISA, without affecting their annual allowance, but not vice versa.

Find out what funds are available in The M&G ISA

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For financial advisers only. Not for onward distribution. No other persons should rely on the information contained within this website.
Issued by M&G Securities Limited and M&G Financial Services Limited which are subsidiaries of M&G Limited. M&G Limited is incorporated and registered in England. Registered Office: Laurence Pountney Hill, London, EC4R 0HH. Registered in England No. 1048359. Registered for VAT, number GB235 3237 81. Both M&G Securities Limited and M&G Financial Services Limited are authorised and regulated by the Financial Services Authority and provide ISAs and other investments. M&G Securities Limited is registered on the FSA's register, No. 122057 (http://www.fsa.gov.uk/register/). Registered Office Laurence Pountney Hill, London, EC4R 0HH. Registered in England No. 90776. M&G Financial Services Limited is registered on the FSA's register, No. 122058. Registered Office Laurence Pountney Hill, London, EC4R 0HH. Registered in England No. 923891. Both companies are registered for VAT, number GB235 3237 81.