Benefits of Opening a Stocks and Shares ISA
You can contribute up to £20,000 in this tax year to your Stocks & Shares ISA. These funds will be free from tax on any capital gains or income received on your investments.
You can withdraw from your ISA or transfer your ISA at any time with no additional cost.
Capital Market Investment
Access potentially greater returns than could be achieved in a cash ISA. When investing your capital is at risk.
Benefits of the Scalable Capital ISA
Scalable Capital’s Risk Management Technology
We provide a real understanding of the risk in your portfolio and adjust your portfolio over time to keep risk consistent and target a better risk adjusted return (more about our dynamic risk management).
Convenient and Transparent
You can access your portfolio to view all your account information online or on the go via our app (more about the account overview).
We use technology to scale our service to thousands of clients and keep costs to a minimum (more about our fees).
The planner below shows the performance of an investment of £20,000 (full ISA allowance) over a 20 year time horizon. We’re comparing the forecasted performance of a Stocks & Shares ISA with Scalable Capital over 4 different loss risk categories with an investment into a cash ISA.
Stocks and Shares ISA returns
The ISA Planner uses historical returns of static portfolios comprised of index funds and ETFs that match the characteristics of the corresponding investment strategy as far as possible. The 5th, 50th and 95th percentile represent a poor, mean and good performance, respectively. Realised performance below the 5th and above the 95th may occur with a corresponding low probability and is represented by the light red and turquoise area, respectively, outside of the cone (the 99th and 1st percentile constituting the outer bounds). Our total fee of 0.75% per year as well as an average expense ratio of 0.25% per year for the ETFs are taken into account. For details refer to the Investment Planner Methodology in the Documentation section in our website footer.
Cash ISA returns
Calculations are based on data from the Bank of England as of 31/07/2016. For the projection of Cash ISA rates, the historical average of monthly interest rates on sterling cash ISA deposits from households has been used. In the timeframe of 2000-2012, the historical average is based on the monthly interest rates of branch-only deposits. From 2012 on, the average is based on online sterling cash ISA deposits excluding unconditional bonuses from households.
Any investments held in an ISA are free from capital gains tax when sold and there is no income tax on interest or dividends within your ISA.
Additionally, income or gains from the ISA don’t have to be declared on the individual tax return.
If you already have a General Investment Account with us you simply need to login and then click on the “Open ISA” button on the right hand side of your account cockpit. You will then be given the choice of opening a new ISA or transferring existing ISAs.
If you don’t have an account with us, you can open a new ISA portfolio and during the process you will be given the option to transfer ISAs from this year and previous years. These can be cash ISAs, Stocks and Shares ISAs or Innovative Finance ISAs.
You can only open one Stocks and Shares ISA in each tax year. If you have already opened one for this year you will need to transfer it to have an ISA with Scalable Capital.
Since April 2017 you can invest up to £20,000 in an ISA per tax year. This allowance can be split into a preferred proportion between a Cash ISA and a Stocks and Shares ISA, of which you can have only one per tax year.
If you want to invest a higher amount, the difference can be invested through your GIA account (General Investment Account), for which our investment minimum of £10,000 per portfolio applies. However, this sum won’t be in a tax wrapper.
Transferring your existing ISAs can be done one of three ways depending on whether you have an account with us already or not.
Lower costs, better risk management, zero hassle.