An Individual Savings Account (ISA) is a tax-efficient investment vehicle in which your client can hold a range of investments, including shares in funds and cash. M&G offers a stocks and shares ISA.
An ISA shelters your clients investments from personal income tax and gains tax.
Please note that any losses made in an ISA cannot be used to offset gains elsewhere. Your client can subscribe to an ISA if they are:
- Aged 16 or over
- Resident and ordinarily resident in the UK for tax purposes.
The M&G ISA is a stocks and shares ISA only. The entire range of M&G OEICS is available in the M&G ISA. Due to our focus on long-term investing, the M&G ISA is not a Flexible ISA, Innovative ISA or a Lifetime ISA.
For 6 April 2020 to 5 April 2021 tax year the maximum your clients can invest in their ISA is £20,000.
Only income shares are available for the majority of funds offered with 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 value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.
The tax rules for ISAs may change in the future, and their tax advantages depend on your individual circumstances.
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: Carry no entry charge and no exit charge.
- Sterling Class X Shares: Carry no entry charge and no exit charge.
- Sterling Class R Shares Carry no entry charge 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 no 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 2020 and 5 April 2021 is £20,000. Please note that at present, M&G offers the stocks and shares ISA only.
|Investment minimums (per fund)
|By monthly Direct Debit
||By lump sum investment
|Initial amount of £10
||Initial amount of £500
|To-up amount of £10
||Top-up amount of £100