Unit Trusts

Investing beyond your ISA allowance

If you’ve used all of your ISA allowance in the current tax year, you can continue to invest with us in a Unit Trust.

Before you consider investments outside of your £20,000 ISA entitlement, it is worth remembering that this allowance is for individuals. So, couples have a combined entitlement of £40,000.

In addition, eligible children each have a £4,260 Junior ISA allowance this tax year that you might like to consider, if a Junior ISA is appropriate for your circumstances: apply, transfer or top-up here.

Basically unit trusts work in the same way as stocks and share ISAs. The same funds are available and they deliver the same potential for growth. You just need to be mindful that they don’t offer the same shelter from tax that ISAs do.

So, depending on your circumstances you may be liable to income and capital gains tax on profits (if they exceed certain amounts).

For more information on current capital gains allowances: click here.

Benefits of investing in unit trusts:

Taking a regular income:

  • Like ISAs, you can use any profits from a unit trust as additional income if you’ve selected this option. However, please bear in mind that depending on your circumstances these may be liable to personal taxes.

Choice of funds:

  • You can continue to invest in the same funds as your ISA or a mix of any of the other funds from our range.

Access to investments:

  • As with ISA investments there is no fixed term, which means you can choose to sell a unit trust at any time. However, you should consider investments of this type to be a medium to long-term commitment of ideally at least five years.

Investment amounts:

  • There are no limits to the amount you can invest in a unit trust and you can invest in as many or as few funds as you like (subject to the minimum amount per fund).
  • Our minimum lump sum investment is £100 with regular contributions from just £20 a month.
  • You can invest amounts up to £100,000 any time online using our My Account. If you wish to invest more than this, please call 0800 980 2691 (we record and monitor calls).

If you’re ready to invest please ensure you have:

  1. Read the Key Investor information documents for the funds you wish to invest in.
  2. Read our Terms and conditions 
  3. Read A guide to investing with us 
  4. Your debit card, sort code and bank account number to hand.
  5. Decided the amount you wish to invest, and which funds you wish to allocate this to.

Start investing

Risks:

Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.