HMRC has published an updated list of authorised ISA managers. The list was updated on 24 February 2021. Inclusion on the list means that HMRC is satisfied that the person, firm or company concerned is able to manage ISAs satisfactorily.
However, HMRC has not approved any ISA that the ISA manager may offer. Potential investors are advised to take independent advice if they’re in any doubt about the suitability of the ISA manager or of a particular ISA.
An ISA account is free of all Income Tax and Capital Gains Tax. Eligible holdings include cash, national savings products, life insurance products, stocks and shares. Account holders may make withdrawals at any time without the loss of tax relief.
The list of investments that can be held in a tax-advantaged ISA also includes:
- securities (including retail bonds) and shares issued by housing associations and other co-operative societies or community benefit societies (registered societies - formerly known as industrial and provident societies);
- a broader range of securities issued by companies, including those admitted to trading on certain Small and Medium Size Enterprise (SME) market;
- shares in a wider range of investment trusts.
The maximum amount that can be invested in an ISA in the current 2020-21 tax year is £20,000. Investments in Junior ISAs and CTFs are capped at £9,000.