Individual Savings Account (ISA)

INDIVIDUAL SAVINGS ACCOUNT (ISA)

An ISA is a savings or investment account where you don't pay tax on income or capital gains earned within the account. ISAs are available only to UK residents.

Using an ISA can be a strategic way to grow investments tax-free and maximise returns. ISAs can help with Capital Gains Tax in several ways:

• CGT Exemption: Any capital gains on investments within an ISA are exempt from CGT. You can sell investments in your ISA without being taxed on your gains.
• Annual Allowance: For the 2025/26 tax year, you can invest up to £20,000 in an ISA. If you haven't already used your allowance, HMRC allows you to move shares into an ISA within 90 days of purchase, which is useful if your gains exceed the CGT annual exemption of £3,000 in 2025/26.
• Future Protection: Profits from selling shares in an ISA are protected from CGT. Since gains and dividends are tax-free, you don't need to report them to HMRC.

IMPORTANT INFORMATION

If you transfer shares to an ISA more than 90 days after buying them, you may have to pay CGT on the transfer, as the shares will need to be sold and bought back within the ISA. If you are unsure, consult an independent financial advisor.

TRANSFERRING TO AN EQi FLEXIBLE STOCKS & SHARES ISA (EQi ISA)

You can now transfer your shares directly into an EQi ISA on maturity. When submitting your maturity instruction, select Choice 2 – ‘Transfer shares to an EQi Flexible Stocks and Shares ISA’ to open an EQi ISA and have your shares transferred. If the value of your shares exceeds the £20,000 annual ISA limit, the excess will go into an EQi Dealing account. You can sell shares from your EQi ISA at any time without CGT liability as long as they remain in the ISA. For more information, visit eqi.co.uk/info/your-sharesave.

To use an ISA from another provider, select Choice 1 – ‘Keep the shares and receive a share certificate’ and send it to your provider. Please ensure your provider will accept shares beforehand. A Letter of Appropriation can be downloaded from the ESP Portal if needed.