Frequently Asked Questions – UK OEICs
ISAs
What is an ISA?
An ISA is a tax-efficient scheme for saving. You do not pay Capital Gains Tax or Income Tax on any profit made from an ISA.
The Government introduced ISAs in 1999 as a replacement for PEPs and TESSAs.
Who can invest in an ISA?
To qualify for an ISA you must be ordinarily resident in the UK or a crown employee serving overseas. This means you have to live in the UK for a significant period of each year. You may wish to check your residency status with the HM Customs & Revenue.
If you start an ISA while you are resident in the UK and then go abroad you cannot carry on putting money in the ISA once you have left the country. However, the ISA remains open and you still get tax relief. You can start putting in money again when you return to the UK.
All applicants must be at least 18 years old.
Are there different types of ISAs?
Yes, there is the option of a Cash or Stock and Shares ISA
In a Stocks and Shares ISA you can invest up to £7,200 per tax year.
You can only have one Stocks and Shares manager for each tax year, Aberdeen Unit rust Managers Limited do not offer a cash ISA.
What types of ISA does Aberdeen offer and how much can I invest?
Aberdeen offers the Stocks and Shares ISA. If you are invested in the Aberdeen Investment Trust ISA you can invest up to £7,200 per tax year.
How long will I have to keep my investment for?
There is no minimum period that you must hold your ISA for. Although OEIC ISAs are seen as medium to long term investments, you may sell them at any time. We will sell your retail share class at no charge at the next valuation point when we receive your written instruction.
What is the minimum investment into an Aberdeen ISA?
Our minimum lump sum investment for OEICs and ISAs is £500 per fund, or £50 a month per fund. Our minimum top up amount is £500.
Does Aberdeen offer CAT Standard ISAs?
The Government has set CAT Standards for ISAs. CAT stands for fair Charges, easy Access and decent Terms.
We do not offer CAT standard ISAs for the following reasons:
- There is a danger that the CAT-mark is perceived as a guarantee.
- There is no scope for the payment of independent financial advice. We believe this to be vital, especially for inexperienced investors.
Find out how to invest in an ISA through the Aberdeen OEIC.