Ethical ISAs – Stocks & Shares (Investment) ISAs
A stocks and shares ISA is a tax efficient account (also known as a ‘wrapper’) for holding your chosen investments.
To create an ethical ISA you simply choose to fill it with socially responsible and environmentally conscious investments.
We can help you identify investments to match your ethical preference and transfer some (or all) of your existing ISA holdings or start a new ISA.
All recommendations are fully FCA regulated and our advice is independent.
Get in touch, have a friendly chat with absolutely no obligation, and see what you think.
Make yours an Ethical ISA
We don’t ‘stock pick’ individual companies for your ISA, we recommend funds and ‘Model Portfolios’ created by expert fund managers with many years experience managing truly ethical investments with a track record of delivering performance.
Funds and portfolios can exclude fossil fuels, weapons, gambling, tobacco, pornography etc. and then apply a further ‘screening’ process to remove heavy polluters, human rights abusers and companies with poor management ethics.
These funds or portfolios can then be placed in your ISA.
Investment options are available across a complete range of risk profiles from adventurous to more risk averse and fund charges are competitive.
We also like to keep our fees low because we don’t want cost to be a barrier that prevents good people from making a difference. In most cases we can give you an indication of fees during our initial conversation.
Making best use of your ISA(s):
Your ISA provides a tax efficient environment for your investment to grow because you don’t pay Income Tax or Capital Gains Tax on the growth.
Besides being one of the most effective ways to save tax they are also simple, straightforward and flexible.
Here are just 5 helpful ways to make the best use of your ISAs.
- Use your annual allowance. This may seem obvious but if you don’t use it you lose it. Any unused allowance can’t be carried over to the next year and because of the tax advantages of ISAs it makes sense to make full use of them if possible.
- You don’t have to contribute in one lump sum. Regular saving can take advantage of when markets dip and some stocks and shares can be bought when prices are low.
- Simplify your savings. Unlike other accounts, ISA gains do not need to be declared on a tax return. If the majority of your savings are tucked up in ISAs there’s less to think about at the end of the Tax Year.
- Inter-spousal estate planning. It is now possible to transfer ISAs to a surviving spouse or civil partner on death. Since 2015 it has been possible for a spouse or civil partner to ‘inherit’ the tax benefits.
- Regular reviews can maximise your ISA potential. If your stocks and shares ISA investments are not performing as well as they could or are no longer aligned to your risk preference then don’t rely on hope. Regular reviews can keep things on track.
ISAs are a useful financial planning tool and can be put to work in your favour with the right approach and understanding.
The 2018/2019 annual ISA allowance is £20,000 which, can be spread between a selection of cash or stocks & shares ISAs.
Get in touch and discuss your ethical ISA options.