Stocks & Shares ISA (Individual Savings Account)
A tax-free investment
Stocks & Shares ISA is an Individual Savings Account (ISA) – a way of sheltering your money from the taxman, because you don’t have to pay income or capital gains taxes on the proceeds from your investment (other than tax on the dividends from shares). However, the fund in which you invest receives UK dividend income net of corporation tax. Please note that tax treatment depends on your individual circumstances and the levels and basis of taxation may change in the future.
Remember though, the value of these funds can go down as well as up and your original investment is not guaranteed.
Use your stocks and shares allowance
You can pay from £15 per month into your Stocks & Shares ISA. Or you can pay in lump sums of £500 and upwards. You can invest up to £11,520 each tax year. This is the maximum annual allowance of which up to £5,760 can be allocated to a Cash Account with another ISA manager in this tax year.
You can withdraw money from your Stocks & Shares ISA whenever you want. However, you should aim to leave it longer than five years as the Stocks & Shares ISA aims to provide capital growth after 5 to 10 years.
We aim to keep costs low. For Stocks & Shares ISA you pay an initial charge of 4% and an annual management charge of 1%. For details, please see Key Features.
Your choice of investment funds
You can decide whether your money is invested in the Managed Growth Fund or the UK Growth Fund or split it between the two.
The Managed Growth Fund is invested mainly in UK equities and additionally in global equities. An element of security is added by investing a smaller proportion into fixed interest securities such as government bonds. Our investment team uses their expertise to decide which are the best growth opportunities.
The UK Growth Fund gives you good potential for growth from a carefully selected portfolio of leading blue-chip companies. It invests solely in UK equities, although a proportion may be held in cash. This is a medium-risk fund that aims to outperform the stockmarket.
The funds are managed by SVM Asset Management, a firm with many years of experience and headed by Colin McLean, one of the UK's best-known fund managers. However, past performance is not a guide to future performance.
So with Stocks & Shares ISA you use the strengths of expert fund managers who aim to profit from the long-term potential of the stock market on your behalf. As you know, the value of these funds can go down as well as up and your original investment is not guaranteed. You could get back less than you have paid in.
If these funds are not suitable for your needs you may want to consider our Bonus ISA which allows you to grow your tax-free allowance by investing in our With-Profits Fund.
Get your Stocks & Shares ISA
Opening a Stocks & Shares ISA with Scottish Friendly is easy.
Make sure you have read and understood the Key Features and Key Investor Information Document relevant to your selected fund(s)before you apply.For further information relating to the charges and costs associated with your selected fund(s), as detailed in the Key Investor Information Documents, please see our Enhanced disclosure of fund charges and costs page. Then you’re ready to:
- Download an application form and post it to:
Scottish Friendly Assurance, FREEPOST, Glasgow G2 4BR.
- Or order an information pack which we’ll send you in the post.
If you apply, we suggest printing or saving a copy of this page, other relevant pages, the Key Features and Key Investor Information Document relevant to your selected fund(s).