John is 30 and single. He has £13,000 invested in a cash ISA with his bank. He has contributed £3,000 to it in the current tax year. He has approached you about making further ISA contributions.
Could he invest in an ISA with Old Mutual Wealth? If so, how much can he contribute?
John could take out an ISA with Old Mutual Wealth as it is possible to contribute to one cash ISA and one stocks and shares ISA in the same tax year.
The total ISA subscription allowance for the 2015/16 tax year is £15,240. John has already contributed £3,000 so he can contribute a further £12,240. It would also be possible to transfer his cash ISA to Old Mutual Wealth. This money could be invested into the cash account with us where it will earn interest. Alternatively, John could invest in the assets available to him within the ISA.
Case study two
Mrs Brown’s husband died in January this year. Both Mr and Mrs Brown held ISAs with Old Mutual Wealth. Mr Brown left everything in his will to his wife. The value of his ISA was £112,500 and is currently £114,950. Mrs Brown is looking to maximise her subscriptions for the current tax year. How much can she invest in her ISA for 2015/16 tax year?
Mrs Brown can invest £15,240 plus the entire value of her late husband’s ISA as at the date of his death. As both ISAs are with Old Mutual Wealth, the units can simply be registered in the name of Mrs Brown. There will be no Capital Gains Tax implications.
Case study three
Mr Black wants to utilise his annual ISA allowance for the current tax year (2015/2016). He holds collectives and has come to you to understand what he could do?
Mr Black hasn’t used his annual capital gains tax exemption of £11,100.
Mr Black can dispose to realise gains up to the annual exempt amount of £11,100, from his collectives
- the value and what contributions he has made to ISAs in the current tax year; and
- whether he needs any of the capital
He could invest some or all of the proceeds into an Old Mutual Wealth ISA. He can even invest in the same funds.
We have a Capital Gains tax tool to help advisers calculate the theoretical gains that would be made on disposals from our Platform Collective Investment Account, but we are unable to support calculations for competitor’s collectives so how these calculations will be supported must be considered.