ISA season 2017/18 - FAQs

[HannahL]

I have a stocks & shares ISA account with an open provider, can I open one with IG?

You can only pay into one stocks & shares ISA in each tax year.  So, if you have one from the 2016/17 tax year with another provider, you'll be able to open one with us for the 2017/18 tax year.

 

Is stamp duty payable in an ISA account?

UK stamp duty is still payable on the purchase of certain UK shares within the ISA account, and is 0.5% of the consideration (excluding AIM shares).  Irish stamp duty also applies, levied at 1%.

 

I have un-invested cash in my ISA from a previous tax year, can I use the funds to purchase shares?

You're able to use any funds in an ISA to purchase shares, regardless of what tax year the funds were deposited.  However, if you haven't used up your full allowance in a given tax year then you cannot combine this with your new subscription limit - any unused allowance will be lost and cannot be rolled over.

 

Can I split my allowance between a cash ISA and a stocks & shares ISA?

Yes, as long as you don't exceed your allowance (£20,000 for 2017/18)!

 

Can I withdraw my funds from my ISA account and then put some back?

Yes, with the introduction of the flexible ISA you can make unlimited withdrawals from your ISA and then 'top up' the balance without using up more allowance.  For example, if you had £10,000 in a 2015/16 ISA and then withdrew it in the 2016/17 tax year, you would then be able to add £25,240 (£10,000 2015/16 + full £15,240 allowance 2016/17) until 5 April 2017.  Be aware that if you do not replace the funds then you can't roll them into the next tax year, and any withdrawn allowance will be lost.

 

Please do post any more questions here!

 

Thanks,

Hannah

[Guest TCA]

Hi Hannah,

 

Can you answer some questions for me please:

 

1) Is there a Bed & ISA service where you can request shares held in an IG share dealing account to be transferred (sold and re-purchased) within the ISA?

 

2) Is there a dividend reinvestment programme? If so, what are the charges?

 

3) With regard to the current rewards offer for transferring shares or an ISA from other brokers to IG, are the rewards calculated per account? i.e. a separate reward amount for transfers to a share dealing account plus a separate reward amount for ISA transfers (based on different the reward bands in the offer) or are all transfers-in added together to arrive at the reward amount for the aggregate amount transferred?

 

Also is there currently a time limit on this offer?

 

4) Lastly, I understand there are no fees for transferring shares out from either the IG share dealing account or IG ISA, but as such are there account closure fees for either?

 

Thanks

 

TCA