Late ISA deals aiming to seduce savers
The Association of Investment Companies has published a list of 72 its members that offer ISAs to investors. The list can be found at theaic.co.uk or by calling 0800 085 8520.
The list includes Aberdeen Asset Management, via Interactive Investor, which has an ongoing £10 flat online or telephone dealing charge.
Baillie Gifford offers an ongoing no-initial-charge or dealing commission deal for a minimum investment of £100 per month, as well as a flat management fee of £32.50 (plus VAT) a year, and it will give a £10 Amazon gift card to savers opening a new ISA before 30 April.
For 12 months there will be no quarterly administration fee for new customers investing in Caledonia Investments before 5 April. Fidelity has an ongoing off er of no initial charge on its trusts, while Invesco Perpetual is offering a 2% discount on its 5% entry charge to all new ISA investments or transfers made before 5 April.
Standard Life Investments is offering a no entry or exit fees deal on a selection of its investment trusts.
Hargreaves Lansdown customers that invest or transfer into a Hargreaves Lansdown Vantage Isa will be entered into a prize draw with £100,000 of prizes. There are 284 prizes to be won, from an Audi A1 to a platinum-plated pen set. To be eligible, the transfer or application must be received by 5 April.
Witan is waiving its 1% dealing fee for lump-sum postal and telephone investments into its Witan Wisdom ISA until the end of April. This means a saving of up to £228 for those who invest their full allowance for this tax year and next.
Investments can be made into the Witan Investment Trust or Witan Pacific Investment Trust, or a combination of the two.
This article was written for our sister publication Money Observer
Invented by a Frenchman in 1954 and ironically introduced in the UK on 1 April 1973, VAT is an indirect tax levied on the value added in the production of goods and services, from primary production to final consumption and is paid by the buyer. Its levying is complex, with a number of exemptions and exclusions. For example, in the UK, VAT is payable on chocolate-covered biscuits, but not on chocolate-covered cakes and the non-VAT status of McVitie’s Jaffa Cakes was challenged in a UK court case to determine whether Jaffa Cake was a cake or a biscuit. The judge ruled that the Jaffa Cake is a cake, McVitie’s won the case and VAT is not paid on Jaffa Cakes in the UK.
Investment trusts are companies that invest money in other companies and whose shares are listed on the London Stock Exchange. As with unit trusts, private investors buying shares in an investment trust are buying into a diversified portfolio of assets (to reduce risk), which is managed by a professional fund manager. Investment trusts differ from unit trusts in two important ways: they are listed on the stockmarket and so are owned by their shareholders and are closed-ended funds with a finite number of shares in issue. This means the share price of investment trusts might not reflect the true value of the assets in the company (known as the net asset value, or NAV) and if the NAV value of a share is £1 and the share price in the market is 90p, the trust is said to be running a discount of 10% to NAV. But this means the investor is paying 90p to gain exposure to £1 of assets. Investment trusts can also borrow money and use this money to buy investments. This is known as gearing and a geared trust is thought to be more of an investment risk than an ungeared one.
Invidivual Savings Accounts were introduced on 6 April 1999 to replace personal equity plans (PEPs) and tax-exempt special savings accounts (TESSAs) with one plan that covered both stockmarket and savings products, the returns from which are tax-exempt. The ISA is not in itself an investment product. Rather, it’s a tax-free “wrapper” in which you place investments and savings up to a specified annual allowance where the returns (capital growth, dividends, interest) are tax-exempt (you don’t have to declare ISAs and their contents on your tax return). However, any dividends are taxed within the investment, and that can’t be reclaimed.