A stocks and shares ISA is a tax efficient way to save for the medium to long term. Through us you have access to a range of different investment opportunities and can invest a regular monthly amount, a lump sum – or both.

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Important things to think about

We currently offer a stocks and shares ISA which lets you choose how your money is invested – giving you access to a range of different investment opportunities. You can invest a regular monthly amount or a lump sum or both.

Transferring an existing ISA to an Aegon Stocks and Shares ISA, or investing your ISA may not be the best option for you. You should compare the benefits from your current ISA with the estimated benefits of your new ISA, including any features or penalties. If you're unsure whether this is right for you or need advice, please seek advice or guidance.

Who can have an Aegon Stocks and Shares ISA?

You must be:

  • aged 18 or over
  • resident in the UK for tax purposes
  • a Crown servant (e.g. diplomatic or overseas civil service) or their spouse or registered civil partner if you don’t live in the UK

Can it be held jointly?

No, ISAs can only be held in a single name.

What makes an ISA tax-efficient?

You have no personal liability to capital gains tax on any growth, or income tax on any income you receive. You don’t have to declare ISA income or growth on your tax return.

The tax treatment of ISAs may be subject to change in future. The tax benefits depend on your individual circumstances.

ISA limits

There are limits to the amount of money you can pay into an ISA every year, set by HM Revenue and Customs (HMRC). The limit for ISAs for the 2018/19 tax year is £20,000.

You can invest the whole allowance in one type of ISA, or if you prefer you can split your ISA allowance between a cash, stocks and shares, innovative finance, and lifetime ISA. For example, you could have £17,000 in stocks and shares ISA and £3,000 in a cash ISA. You could transfer that £3,000 into stocks and shares and have £20,000 in stocks and shares. Or vice versa. 

Can I top up my ISA during the tax year?

You can top up your ISA with any minimums set out in the key features document Just make sure your total payments into your ISA (or ISAs)  don’t exceed the limits for that tax year.

You can also transfer between products by moving funds from your GIA to an existing ISA or to a new ISA with ourselves.  This offers the option to maximise your tax free ISA allowance if you haven't already reached your limit.

Important things to think about 

The value of an ISA will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than you invested. The favourable tax treatment of ISAs may not be maintained in the future and is subject to changes in legislation.

Each of the funds you choose to invest in will have its own specific risks.  You should read the Key Investor Information Document (KIID) for each fund to make sure you’re aware of the risks.

Although there’s no fixed term, because the value of your invested money can fall in value, you should consider this a medium to long-term investment.  You should be prepared to hold the investment for at least five years - ideally longer.

The ISA cash facility

The cash facility lets you hold cash in your stocks and shares ISA. This money can be used to invest into funds, to pay charges or can be withdrawn.

You may also be able to re-direct and pay your ongoing charges from your ISA to be paid through your GIA cash facility (which is automatically set up for you when you buy an ISA from Aegon) rather than through your ISA. Please speak to your intermediary to check if this option is available to you. See Paying your charges through your GIA.

Do I get interest on any money in the cash facility?

Any money in the cash facility accrues interest which is paid on a monthly basis. Interest is paid at the Bank of England base rate less 0.05%, this means that as at April 2018 this is 0.45% (Base rate of 0.5% - 0.05%).

How do I add money to the cash facility?

You can add money to the cash facility in three ways:

  • By logging into your investment summary and following the top-up journey. This lets you pay into your cash facility by debit card, bank transfer or cheque.
  • By Direct Debit – you need to complete the relevant form to set up a Direct Debit. 
  • For investments that generate income – you can choose to leave any income you get in your cash account.

Transferring an existing ISA to us

Transferring existing ISAs to us lets you have all ISA investments in one account with one consolidated statement. It will help make tracking your investment performance and making any changes to your portfolio easier. See our guide to transferring for more.

You can transfer existing stocks and shares ISAs and cash ISAs held with other providers to us. We don’t make a direct charge to you for ISA transfers, but your current provider may charge an exit charge.

You can transfer ISAs from previous tax years in full or in part and it won't affect this year's ISA allowance. If you're transferring an ISA that holds current tax year subscriptions, you must transfer that amount in full.

Please note, if you transfer a cash or lifetime ISA to us, we’ll convert it to a stocks and shares ISA and your lifetime ISA status will be lost along with any other benefits specific to that ISA. 

You can’t currently transfer over an existing ISA if you don’t have an intermediary. If you do have an intermediary, you should organise a transfer through them. 

Can I transfer to another provider?

You can transfer from Aegon to other ISA providers. Assets held within an ISA wrapper can be re-registered within the ISA, preserving your market holdings and the tax benefits of the ISA. You can re-register commission-free share class funds off the platform if the new provider offers the same share class. Please check carefully with the platform/fund manager you’re intending to move to as to the availability of your funds at their end.