ISA Guide

<BODY BGCOLOR="#FFFFCC" LEFTMARGIN="20" TOPMARGIN="20" MARGINWIDTH="20" MARGINHEIGHT="20" TEXT="#000000" LINK="#000080" VLINK="#000080" ALINK="#0000FF"> <P ALIGN="CENTER"><FONT FACE="Arial"><B>ISA Guide</B></FONT></P> <P ALIGN="LEFT"><FONT FACE="Arial" SIZE="-1"><B>Individual Savings Account - What are they? </B></FONT></P> <UL> <LI><FONT FACE="Arial" SIZE="-1">The ISA is the tax-free replacement for PEPs and TESSAs, introduced by the present government.</FONT></LI> <LI><FONT FACE="Arial" SIZE="-1">It is a tax-free investment for individuals via direct shares or Unit Trusts/OEICs.</FONT></LI> <LI><FONT FACE="Arial" SIZE="-1">A facility for a cash element and or a life assurance element also exists.</FONT></LI> <LI><FONT FACE="Arial" SIZE="-1">The option of being able to select from various elements makes this an attractive investment for all individuals.</FONT></LI> </UL> <P ALIGN="LEFT"><FONT FACE="Arial" SIZE="-1"><B>How long will ISA's last? </B></FONT></P> <UL> <LI><FONT FACE="Arial" SIZE="-1">The ISA is guaranteed to run for at least 10 years from their introduction (April 1999).</FONT></LI> <LI><FONT FACE="Arial" SIZE="-1">After 7 years a review will take place. Any changes from the review may be made to ISAs after the initial 10 year period has expired.</FONT></LI> </UL> <P ALIGN="LEFT"><FONT FACE="Arial" SIZE="-1"><B>What are the Investment limits? </B></FONT></P> <UL> <LI><FONT FACE="Arial" SIZE="-1">£7000 per annum of which: £1000 per annum can be cash or National Savings and £1000 per annum can be a life assurance element.</FONT></LI> </UL> <P ALIGN="LEFT"><FONT FACE="Arial" SIZE="-1"><B>How does an ISA work? </B></FONT></P> <UL> <LI> <P><FONT FACE="Arial" SIZE="-1"> An ISA has three different components: </FONT></P> <OL> <LI> <P><FONT FACE="Arial" SIZE="-1"><B>Cash</B> - Saving your money in a deposit account. </FONT></P></LI> <LI> <P><FONT FACE="Arial" SIZE="-1"><B>Stocks and Shares</B> - Investments that are linked to the stock market - an option similar to PEPs. </FONT></P></LI> <LI> <P><B>Life and Assurance</B> - Saving your money in a life assurance product. </P></LI> </OL></LI> <LI> <P><FONT FACE="Arial" SIZE="-1">With an ISA you can choose one, two or all three of these components.</FONT></P></LI> </UL> <P ALIGN="LEFT"><FONT FACE="Arial" SIZE="-1"><B>How can you spread the ISA components? </B></FONT></P> <UL> <LI><FONT FACE="Arial" SIZE="-1">The ISA has three components or elements and an investor can either have three separate managers looking after each component or one manager looking after all three components.</FONT></LI> <LI><FONT FACE="Arial" SIZE="-1">An investor may also choose an ISA that invests only in a certain type of unit trust. However, an investor may wish to have the flexibility to invest in an ISA with the three different components as long as they do not invest more than the maximum for each component.</FONT></LI> </UL> <P ALIGN="LEFT"><FONT FACE="Arial" SIZE="-1"><B>What are Maxi and Mini ISAs?</B></FONT> </P> <UL> <LI> <P><FONT FACE="Arial" SIZE="-1">There are two types of ISAs in which the three components can be held: </FONT></P> <OL> <LI> <P><FONT FACE="Arial" SIZE="-1"><B>Maxi ISA </B>- allows you to invest in one or more of the components with one provider. </FONT></P></LI> <LI> <P><FONT FACE="Arial" SIZE="-1"><B>Mini ISA </B>- allows you to open one Mini for each of the components. Each component can be held with a different provider. </FONT></P></LI> </OL></LI> <LI><FONT FACE="Arial" SIZE="-1">In any one tax year you may contribute to either one Maxi or up to three different Mini ISAs, but you are not allowed to contribute to both a Maxi and a Mini ISA in the same tax year.</FONT></LI> </UL> <P ALIGN="LEFT"><FONT FACE="Arial" SIZE="-1"><B>How much can I Invest?</B></FONT> </P> <UL> <LI> <P><B><FONT FACE="Arial" SIZE="-1">Mini ISA</FONT></B></P> <TABLE> <TR> <TD COLSPAN="2"><FONT FACE="Arial, Helvetica" SIZE="2">You can invest your money in each of the following components,<BR> subject to an overall limit of £7,000 </FONT></TD> </TR> <TR> <TD COLSPAN="2"> </TD> </TR> <TR> <TD><B><FONT FACE="Arial, Helvetica" SIZE="2"> Cash: </FONT></B></TD> <TD><FONT FACE="Arial, Helvetica" SIZE="2"> up to £3,000 </FONT></TD> </TR> <TR> <TD><B><FONT FACE="Arial, Helvetica" SIZE="2"> Stocks and shares: </FONT></B></TD> <TD><FONT FACE="Arial, Helvetica" SIZE="2"> up to £3,000 </FONT></TD> </TR> <TR> <TD><B><FONT FACE="Arial, Helvetica" SIZE="2">Life Assurance: </FONT></B></TD> <TD><FONT FACE="Arial, Helvetica" SIZE="2"> up to £1,000 </FONT></TD> </TR> <TR> <TD COLSPAN="2">  </TD> </TR> </TABLE></LI> <LI> <P><B><FONT FACE="Arial" SIZE="-1">Maxi ISA</FONT></B></P> <TABLE> <TR> <TD COLSPAN="2"><FONT FACE="Arial, Helvetica" SIZE="2">You can mix and match how you spread your money as follows, <BR>subject to an overall limit of £7,000 </FONT></TD> </TR> <TR> <TD COLSPAN="2"> </TD> </TR> <TR> <TD><B><FONT FACE="Arial, Helvetica" SIZE="2"> Cash: </FONT></B></TD> <TD><FONT FACE="Arial, Helvetica" SIZE="2"> up to £3,000 </FONT></TD> </TR> <TR> <TD><B><FONT FACE="Arial, Helvetica" SIZE="2"> Stocks and shares: </FONT></B></TD> <TD><FONT FACE="Arial, Helvetica" SIZE="2"> up to £7,000 </FONT></TD> </TR> <TR> <TD><B><FONT FACE="Arial, Helvetica" SIZE="2">Life Assurance: </FONT></B></TD> <TD><FONT FACE="Arial, Helvetica" SIZE="2"> up to £1,000 </FONT></TD> </TR> </TABLE></LI> </UL> <P> </P> <P ALIGN="LEFT"><FONT FACE="Arial" SIZE="-1"><B>Advantages of ISA's </B></FONT></P> <UL> <LI><FONT FACE="Arial" SIZE="-1">The plan is exempt from Capital Gains Tax and Income Tax.</FONT></LI> <LI><FONT FACE="Arial" SIZE="-1">A 10% tax credit is also paid for the first five years of the plan on dividends received from UK equities.</FONT></LI> <LI><FONT FACE="Arial" SIZE="-1">This would also apply to UK equities held within unit trusts as well as the life assurance component.</FONT></LI> <LI><FONT FACE="Arial" SIZE="-1">ISA's have no minimum term and an investor will only be bound by the rules of the plan that they select.</FONT></LI> </UL> <P ALIGN="LEFT"><FONT FACE="Arial" SIZE="-1"><B>Disadvantages of ISA's </B></FONT></P> <UL> <LI><FONT FACE="Arial" SIZE="-1">The ISA does not have such attractive investment limits as a PEP and TESSA.</FONT></LI> <LI><FONT FACE="Arial" SIZE="-1">ISA's maybe considered a complex product, therefore Independent financial advice maybe worth considering ensuring that an investor purchases the most appropriate ISA..</FONT></LI> </UL> <P ALIGN="LEFT"><FONT FACE="Arial" SIZE="-1"><B>CAT Standards </B></FONT></P> <UL> <LI><FONT FACE="Arial" SIZE="-1">With the launch of ISAs, the Government has introduced a set of voluntary benchmark standards as a guide to investing in ISAs. These are known as the CAT standards</FONT></LI> <LI><FONT FACE="Arial" SIZE="-1">ISA's can be divided into 'CAT' and non-'CAT' standard ISAs.</FONT></LI> <LI> <P><FONT FACE="Arial" SIZE="-1">CAT stands for: </FONT></P> <UL> <LI><FONT FACE="Arial" SIZE="-1">fair <B>C</B>harges </FONT></LI> <LI><FONT FACE="Arial" SIZE="-1">easy <B>A</B>ccess</FONT></LI> <LI> <P><FONT FACE="Arial" SIZE="-1">decent <B>T</B>erms </FONT></P></LI> </UL></LI> <LI><FONT FACE="Arial" SIZE="-1"> In order for an ISA to be described as 'meeting the CAT standard', each component within an ISA will have to meet the standards.</FONT></LI> <LI><FONT FACE="Arial" SIZE="-1"> However, this does not necessarily mean that it will be the most suitable product for you. The CAT standards also do not guarantee investment performance. </FONT></LI> </UL> <P ALIGN="LEFT"><FONT FACE="Arial" SIZE="-1"><B>What happens to TESSAs?</B></FONT></P> <UL> <LI> <P><FONT FACE="Arial" SIZE="-1">If you have a TESSA, within 6 months of its maturity you have the option to either: </FONT></P> <OL> <LI> <P><FONT FACE="Arial" SIZE="-1">re-invest your TESSA contributions into the cash component of either a Mini ISA or Maxi ISA, without it counting towards your ISA limits; or </FONT></P></LI> <LI> <P><FONT FACE="Arial" SIZE="-1">re-invest your contributions in a TESSA Only ISA. </FONT></P></LI> </OL></LI> </UL> <P ALIGN="CENTER"><B><FONT FACE="Arial" SIZE="-1">Please <A HREF="contact_us.html">contact us</A> for further information,<BR>or submit your <A HREF="enquiry_form.html">enquiry</A></FONT></B></P> <TABLE WIDTH="410" BORDER="0" CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER"> <TR VALIGN="MIDDLE"> <TD VALIGN="MIDDLE" ALIGN="CENTER"><IMG SRC="Contact_artwork/phone.gif" WIDTH="59" HEIGHT="58" BORDER="0" ALT="+44 (0)2920-736000"></TD> <TD VALIGN="MIDDLE" ALIGN="CENTER"><A HREF="registration_form.html"><IMG SRC="register-anim.gif" ALT="Register With Us" WIDTH="143" HEIGHT="28" BORDER="0"></A></TD> <TD VALIGN="MIDDLE" ALIGN="CENTER"><IMG SRC="Contact_artwork/fax.gif" WIDTH="71" HEIGHT="56" BORDER="0" ALT="+44 (0)2920-736222"></TD> </TR> <TR VALIGN="MIDDLE"> <TD VALIGN="MIDDLE" ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"><B>+44 (0)2920-736000</B></FONT></TD> <TD VALIGN="MIDDLE" ALIGN="CENTER"></TD> <TD VALIGN="MIDDLE" ALIGN="CENTER"><FONT FACE="Arial" SIZE="-1"><B>+44 (0)2920-736222</B></FONT></TD> </TR> </TABLE><BR> <TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER"> <TR> <TD VALIGN="MIDDLE" ALIGN="CENTER"> <P><B><FONT FACE="Arial" SIZE="-1">| <A HREF="home.html">Home</A> | <A HREF="site_map.html" TARGET="_top">Site Map</A> | <A HREF="menu-help_and_tools.html">Help & Tools</A> | <A HREF="contact_us.html">Contact Us</A> | <A HREF="frameset-login.html" TARGET="_top">Login</A> |<BR>| <A HREF="menu_corporate.html">Corporate Services</A> | <A HREF="individual.html">Individual Services</A> | <A HREF="frameset-menu-special_services2.html" TARGET="_top">Special Services</A> |</FONT></B></P></TD> </TR> <TR> <TD VALIGN="MIDDLE" ALIGN="CENTER"><HR></TD> </TR> <TR> <TD VALIGN="MIDDLE" ALIGN="CENTER"> <P><B><FONT FACE="Arial" SIZE="-2">| <A HREF="employee_benefits_survey.html">Employee Benefits Survey</A> | <A HREF="enquiry_form.html">Enquiry Form</A> | <A HREF="mailing_list.html">Mailing List</A> | <A HREF="feedback_form.html">Feedback Form</A> | <A HREF="mailto:michelle@grosvenor-butterworth.co.uk">Email Us</A> |</FONT></B></P></TD> </TR> </TABLE><BR> <P ALIGN="CENTER"><FONT FACE="Arial" SIZE="-2">Grosvenor Butterworth is regulated by the Financial Services Authority</FONT><A HREF="copyright.html"><FONT FACE="Arial" SIZE="-2"><BR>© 1997-2000 Grosvenor Butterworth All Rights Reserved<BR> | Legal Disclaimer |</FONT></A></P> <P ALIGN="CENTER"><A HREF="http://www.saqnet.co.uk/scripts/hitcount11a.dll?hide:grosb"><IMG SRC="spacer.gif" WIDTH="200" HEIGHT="50" BORDER="0"></A></P> <TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" ALIGN="center" width="80%"> <TR> <TD>  <SCRIPT TYPE="text/javascript" LANGUAGE="javascript"> s="na";c="na";j="na";f=""+escape(document.referrer) </SCRIPT> <SCRIPT TYPE="text/javascript" LANGUAGE="javascript1.2"> s=screen.width;v=navigator.appName if (v != "Netscape") {c=screen.colorDepth} else {c=screen.pixelDepth} j=navigator.javaEnabled() </SCRIPT> <SCRIPT TYPE="text/javascript" LANGUAGE="javascript"> function pr(n) {document.write(n,"\n");} NS2Ch=0 if (navigator.appName == "Netscape" && navigator.appVersion.charAt(0) == "2") {NS2Ch=1} if (NS2Ch == 0) { r="&size="+s+"&colors="+c+"&referer="+f+"&java="+j+"" pr("<A HREF=\"http://www.TheCounter.com\" TARGET=\"_top\"> " BORDER=0 SRC=\"http://c1.thecounter.com/id=814925"+r+"\" align=left><\/A>")} </SCRIPT> <NOSCRIPT><A HREF="http://www.TheCounter.com" TARGET="_top"><IMG SRC="http://c1.thecounter.com/id=814925" ALT="TC" BORDER=0></A> </NOSCRIPT>  </TD> <TD> <div align="left"><IMG SRC="spacer.gif" WIDTH="8" HEIGHT="1" BORDER="0"> </div> <p align="right"><img src="http://www.saqnet.co.uk/scripts/hitcount11a.dll?hide:grosb" border="0" width="1" height="1"><a href="http://www.dynamicwebs.co.uk/" target="_top"><img src="dw_button.gif" alt="Designed by Dynamic Webs..." width="77" height="34" border="0"></a> <p align="RIGHT"> </TD> </TR> </TABLE> </BODY>