An ISA is a tax-efficient investment vehicle. Within your client’s ISA they can hold different asset classes such as bonds, equities, Innovative Finance and cash. The ISA protects the items inside it from income tax and capital gains tax.
For 6 April 2016 to 5 April 2017 tax year the maximum your clients can invest in their ISA is £15,240.
Please note that The M&G ISA is a stocks and shares ISA and due to our focus on long-term investing The M&G ISA is not a Flexible ISA.
Please note that any losses made in an ISA cannot be used to offset gains elsewhere. Your clients can subscribe to an ISA if they are:
- aged 18 or over
- resident and ordinarily resident in the UK for tax purposes
Only income shares are available for the majority of funds offered within The M&G ISA. Income shares entitle the holder to be paid the income attributed to those shares on the payment date. This is usually paid twice a year but may be paid annually, quarterly or monthly depending on the fund. This income can be reinvested in further shares of the same fund if you so choose.
The tax rules for ISAs may change in the future, and their tax advantages depend on your clients’ individual circumstances.
The entire range of M&G OEICs is available in The M&G ISA.
The value of investments will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested.
The following share classes are currently available for investment in the majority of our funds within The M&G ISA. This allows your client to choose the share class that best suits their investment needs.
- Sterling Class A Shares: May carry an entry charge (which is deducted from the amount your client is investing) and no exit charge.
- Sterling Class X Shares: Do not carry an entry charge, but have an exit charge which reduces each year from the date of each investment and after five years there is no exit charge at all.
- Sterling Class R Shares carry an entry charge (which is deducted from the amount you are investing) and no exit charge. Please note commission is not payable on this share class.
- Sterling Class R-H, A-H and S-H Shares carry an entry charge and no exit charge. We have launched hedged Sterling share classes for our UK investors for those funds whose base currency is not Sterling. For information about hedged share classes and the base currency of M&G funds, please refer to the relevant KIID and Prospectus, or contact our Customer Relations team.
The table below shows the minimum investment limits within The M&G ISA. The maximum your client can invest between 6 April 2016 and 5 April 2017 is £15,240. Please note that at present, M&G offers the stocks and shares ISA only.
|Minimum investment limits
|Minimum lump sum
|Minimum monthly amount
|Minimum additional lump sum
|Minimum additional monthly amount