What Is a Stocks & Shares ISA Account?

A stocks & shares individual savings account (ISA) allows UK nationals to invest in shares and stocks (and other interest-bearing products such as corporate bonds) that are publicly traded.

These stocks and shares, held within a stocks and shares IRA account, can be listed and traded in the UK stock market or in other international financial markets, including North America, Europe, and Asia.

Interest or capital gains earned on stocks held in a stocks and shares ISA are received tax-free.

Who Can Open a Stocks and Shares ISA?

Any UK national who is 18 years or older may open a stocks and shares ISA.

Stocks and Shares ISA
What Is a Stocks & Shares ISA Account

Some institutions also offer Junior ISAs, which may be used to invest in stocks and shares. Junior ISAs can be opened and operated on behalf of children under the age of 18. However, once the child turns 18, such accounts are automatically converted into adult stocks and shares ISAs.

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How Much Does It Cost to Manage a Stocks and Shares ISA?

The cost of owning and operating a stocks & shares ISA may depend on the type of account you have, the range of investment products you hold, and the amount of money you have invested.

Most self-dealing accounts may charge you an account opening fee but will not impose a monthly/ongoing fee. However, you have to pay for every transaction that you make – whether buying or selling.

Other accounts charge you a fee based on the type of product you hold. For instance, many funds will charge you a certain percentage of the value that you invest in them, while, generally speaking, ETFs will charge you significantly (compared to funds) less.

A managed stocks and shares ISA will have a fee structure based on a slab/range of your account value. For instance, investing between £1 and £10,000 may cost you 0.45% annually, but a portfolio valued between £10,001 and £50,000 may cost you 0.25%.

There may also be annual management and administrative fees associated with various types of ISA accounts.

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