What is an ISA?
Individual Savings Accounts (ISAs) were set up by the Government in 1999 to replace PEPs which, since 1987, had encouraged people to save by offering a "wrapper" within which their investments would not be adversely affected by tax. From 6th April 2008, HM Revenue and Customs changed the ISA rules. As a result, all PEPs became Stocks and Shares ISAs. ISAs work on the same principle as PEPs whereby any profits or dividends generated by savings within the ISA are tax-free. All adults resident or ordinarily resident in the United Kingdom over the age of the 16* are entitled to make use of ISAs.
The most fundamental element of ISAs is that all profits are tax-free.
*Sixteen year olds are entitled to have a cash ISA but investors must be eighteen or over for a Stocks and Shares ISA.
What Artemis ISAs are available to invest in?
Artemis has 10 Unit Trusts which are eligible for ISA investments
- Artemis Income Fund
- Artemis High Income Fund
- Artemis Capital Fund
- Artemis UK Growth Fund
- Artemis UK Smaller Companies Fund
How do ISAs work?
From the 6th April 2008, savers can put their capital into two different types of investment each tax year, with the same or a different provider. These are cash and stocks and shares.
The following information shows you how much you may invest in an ISA during a financial year.
ISA Investment Limits
| Component | Upper Limit |
|---|---|
| Stocks & Shares | £7,200 |
| Cash | £3,600 |
The annual ISA investment allowance is £7,200 per tax year. Up to £3,600 of that allowance can be saved in cash with one provider. The remainder of the £7,200 can be invested in a Stocks and Shares ISA with either the same or another provider. For example, you can choose to save £1,000 in a cash ISA with one provider and £6,200 in a Stocks and Shares ISA with a different provider.
A Few Facts
- ISAs were introduced on 6th April 1999, replacing PEPs (Personal Equity Plans).
- HM Revenue and Customs changed the ISA rules from 6th April 2008. As a result, all Personal Equity Plans (PEPs) became Stocks and Shares ISAs.
- ISAs can be offered as a Cash ISA or a Stocks and Shares ISA.
- All ISA investment gains are currently free from Capital Gains Tax.
- You can transfer money saved in a cash ISA to a Stocks and Shares ISA, but you can't transfer money the other way.
Artemis offers equity based unit trust ISAs and has no cash products. We do not offer self-select ISAs, which are where individual stocks are chosen by the investor. We provide unit trust Stocks and Shares ISAs up to the value of £7,200.
Regular Savings or Lump Sums
Artemis gives investors a choice between lump sum investments with a minimum value of £1,000, or regular savings with a minimum value of £50 per month.
If you would like to add to your lump sum, you must make sure it would not exceed the £7,200 allowance you originally invested. For example, if you initially put £6,000 away, you can add up to £1,200 during the same tax year regardless of how much profit the fund has accumulated in the meantime. Equally, if you invested the same amount and then withdrew some of it, you would still only be able to add £1,200 before the end of the tax year as that was all that was left of your allowance.
With regular savings, you should be aware that if you continue to pay monthly amounts into your ISA from one tax year to the next, the new year's payment will be considered part of an additional ISA.
You may not sell your holdings in a Cash or Stocks and Shares ISA and then open a new ISA in the same tax year.
Can I top up my investment during a tax year?
Yes, so long as you have not already used your full annual ISA allowance, £7,200. All you need to do is send the relevant Manager a letter clearly stating your name, address and account number and the name of the fund(s) in which you wish to invest. The letter must be signed by you and be accompanied by a cheque for the amount to be invested. See table above for minimum top-up limits.
Can I transfer an ISA to Artemis?
There is no upper limit on the amount which can be transferred from your existing ISA(s) but we require a minimum of £1,000 unless further regular contributions are to be made. We will ask your existing manager to sell the investments in your existing ISA and transfer the cash proceeds to Artemis Fund Managers, which will then be invested in your selected ISA fund(s). You can only transfer a stocks and shares component to us. We will accept partial transfers if available from your existing manager. This does not apply to your current year ISA which, in accordance with the regulations, must be transferred in full.
Applications for ISA transfers should be made in writing to us using the relevant ISA Transfer instruction form. Your transfer instruction shall be deemed to be an instruction for the transfer of the whole of your ISA to us if you do not complete a monetary amount or tax year(s) in your transfer instruction form or if your ISA is a current year ISA.
How do I invest?
Complete one of the application forms and return it to the relevant Manager at the address on the application form. The minimum investment levels are set out in the table below. The Managers do, however, have discretion to waive these limits. No interest will be paid on any monies awaiting clearance and/or investment. The maximum that you can invest is also shown in the table below.
Minimum and Maximum Investment Levels
| Fund | Minimum Initial Lump Sum | Maximum Initial Lump Sum | Minimum Lump Sum Top Up | Minimum Monthly | Maximum Monthly |
|---|---|---|---|---|---|
| Artemis Fund Managers | £1,000 | £7,200 | £1,000 | £50 (£50 per fund) |
£600 |
Dealing in funds takes place at 12.00 noon on the business day following receipt of your application or instructions.
Cash components cannot be accepted.
Please read our ISA Key Features and Terms and Conditions document for full details on ISAs offered by Artemis before making any investment decision.
