ISAs

An Individual Savings Account (ISA) is a tax-efficient investment vehicle in which you can hold a range of investments, including shares in funds and cash. M&G offers a stocks and shares ISA.

Ready to invest in your APS ISA allowance?

Before you transfer please make sure you have read the Prospectus as well as the Important Information for Investors document and the Key Investor Information Documents (KIIDs) for the fund(s) in which you wish to invest.

View the M&G Additional Permitted Subscription (APS) ISA Application Form and Transfer Authority Form

M&G Junior ISA

Junior ISAs are a flexible, simple and tax-efficient way for you to save for a child’s future.

Find out more about The M&G Junior ISA

How do ISAs work?     

An ISA shelters your investments from personal income tax and capital gains tax. Please note that any losses made in an ISA cannot be used to offset gains elsewhere. You can subscribe to an ISA if you are:

  • aged 16 or over
  • resident and ordinarily resident in the UK for tax purposes

There are three types of ISA, investing in either stocks and shares, cash or an Innovative Finance ISA:

  • you can transfer money held in an ISA from stocks and shares into cash and vice versa, without affecting your annual allowance
  • you can invest up to £15,240 in your ISA during the 2016/2017 tax year 
  • you can choose how to split your tax-efficient savings yourself. For example, you can save the full amount in stocks and shares or the full amount in cash – or you can invest in a combination of the two depending on your individual investment needs
  • Please note: Sterling Class X Shares are no longer available for new investments in The M&G ISA. On our Fund availability and fund types table (on page 4 of the attached document) you will find information about the specific share classes available in your choice of fund(s).

Changes to ISA inheritance regulations

Under the new rules, additional ISA subscriptions are now available to a surviving spouse or civil partner, as long as the ISA holder passed away on or after 3 December 2014.

This comes in the form of an Additional Permitted Subscription (APS) ISA allowance, which is equal to the amount that was held in the deceased's ISA account on the day they died. This is additional to the surviving spouse/civil partner’s personal annual ISA allowance, which is currently set at £15,240.

Find out more about how APS ISA allowances work and how to apply.

The M&G ISA

The M&G ISA is a stocks and shares ISA only. You can hold most of the M&G range of funds in The M&G ISA.

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 individual circumstances.

The value of investments, and the income from them, will fluctuate, which will cause fund prices to fall as well as rise and you may not get back the original amount you invested.

Invest now

Before investing, please make sure you have read the Prospectus and Key Investor Information Documents (KIIDs) for the fund(s) in which you wish to invest. Here you will find more information about your investment, including details about the fund’s different share classes: be sure to choose the appropriate one for you. The KIIDs also explains fund charges, including the ongoing charge, a deduction from your fund which M&G makes to cover the costs of investment management and administration.

You should also read the Important Information for Investors document, which includes M&G’s Terms and Conditions.

You’ll need Adobe Acrobat to view both these documents. 

Please note: An initial investment under £500 into Sterling Class A Shares is not available online due to our investment minimums requirement. If you hold Sterling Class X Shares and are looking to top up your investment with between £100 and £500, and you do not already hold the Sterling Class A Shares, please contact our Investment Helpline on 0800 389 8600 to make your investment into Sterling Class A Shares.

We don’t give financial advice, so you should speak to a financial adviser if you need help deciding if an investment is right for you. The views expressed in this document should not be taken as a recommendation, advice or forecast.

Once you’ve chosen the fund(s) in which you’d like to invest and have read the relevant KIID and the Important Information for Investors document, you can:

You can also transfer your existing ISAs with other providers to M&G.

Please note, your current provider may apply a charge when you transfer your investment. Whilst your investment is being transferred it will be out of the market for a short period of time and will not lose or gain in value.

Funds available

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. Please be aware, your investment may increase or decrease as a result of currency fluctuations.

The following investment trust is also available for investment in The M&G ISA:

High Income Investment Trust P.L.C.

Share classes, charges and discounts

Share classes

  • Sterling Class A Shares carry an entry charge and no exit charge. However, M&G have now discounted the entry charge to zero (0%) on all new investments, including switches, in Sterling Class A Shares made by individuals who are not dealing via a financial adviser.
  • Sterling Class X Shares are no longer available for new investments in The M&G ISA. On our Fund availability and fund types table (on page 4 of the attached document) you will find information about the specific share classes available in your choice of fund(s).

Please note that an ongoing charge will apply. The ongoing charge includes direct costs to the fund, such as the annual management charge, custodian charge and administration fee. For property funds, the specific costs of investing in property will also be included. For information on all of our charges, please refer to our Fund Charges page

Remember to specify the fund(s) and share class in which you wish to invest on your application form. Your application may be rejected if it is only partially completed.

Most funds offer the choice of two share types – Income or Accumulation. Only income shares are available for the majority of funds offered within The M&G ISA.

Learn more about share classes for ISAs by downloading our Important Information for Investors document. You’ll need Adobe Acrobat to read this document.

Charges and discounts

How to invest and get a discounted entry charge – Sterling Class A Shares

M&G now have discounted the entry charge to 0% on all new investments, including switches, in Sterling Class A Shares made by individuals who are not dealing via a financial adviser. An ongoing charge will also apply. If you choose to invest by Direct Debit, the entry charge discount will apply for as long as the Direct Debit contributions continue. For information on all of our charges, please refer to our Fund Charges page.

The M&G ISA investment limits

The table below shows the minimum investment limits in The M&G ISA. From 6 April 2016 to 5 April 2017 the maximum you can invest in an ISA is £15,240. Please note that M&G only offer a stocks and shares ISA.


Minimum investment limits
Minimum lump sum £500
Minimum monthly amount £10
Minimum additional lump sum £100
Minimum additional monthly amount £10

Need further information?