Stocks & Shares ISA Questions

Individual Savings Accounts (ISAs) are a tax efficient account for savings and investments that replaced Tax Exempt Special Savings Accounts (TESSAs) and Personal Equity Plans (PEPs).

Individuals aged 16 and over can subscribe to a Cash ISA. Anyone aged 18 and over can subscribe to a Stocks and Shares ISA. Investors must be resident and ordinarily resident for tax purposes in the UK or be a crown employee serving overseas (for example a member of the armed services), or be married to, or in a civil partnership with, a crown employee serving overseas.

You can invest up to £7,200 per tax year in an M&S Stocks & Shares ISA or, if you will be aged 50 or over on 5 April 2010, you can invest up to £10,200 (effective from 6 October 2009). Both of these amounts are less any amount you have already subscribed to a Cash ISA. For example, if you save £2,000 in a Cash ISA, you can invest up to £5,200 in a Stocks & Shares ISA in the same tax year – or up to £8,200 if you will be aged 50 or over on 5 April 2010.

The minimum lump sum investment per fund is £100. Following this you can make top up investments of £25 per fund. The minimum amount that can be invested on a monthly basis by Direct Debit is £25 per fund.

Find out more about the changes to Stocks and Shares ISA limits.

Find out more about the changes to Stocks and Shares ISA limits and Cash ISA limits.

There are two types of ISA available: Cash ISA and Stocks & Shares ISA

Cash ISA - You can subscribe to one Cash ISA each tax year. Of the overall £7,200 ISA allowance, up to £3,600 can be subscribed to a Cash ISA each tax year. If you will be aged 50 or over on 5 April 2010, you have a higher ISA allowance of £10,200 (effective from 6 October 2009), of which up to £5,100 can be subscribed to a Cash ISA each tax year.

Stocks and Shares ISA - You can subscribe to one Stocks and Shares ISA each tax year. The maximum amount you can subscribe is £7,200 each tax year or, if you will be aged 50 or over on 5 April 2010, the maximum amount you can subscribe is £10,200 (effective from 6 October 2009). Both of these amounts are less any amount you have already subscribed to a Cash ISA.

Find out more about the changes to Cash ISA limits and Stocks and Shares ISA limits.

You can make your investment through a regular Direct Debit, a lump sum, or with a combination of the two. If you set up a Direct Debit, you can save from £25 a month into your Stocks and Shares ISA. You can increase, decrease, stop or restart your payments any time you like. Lump sums can be invested by Maestro, Visa Debit, Solo cards.

Before transferring you should read the simplified prospectus for the fund you’re planning to invest in – and our information for investors.

Yes, you may wish to transfer a Cash ISA or Stocks & Shares ISA you hold with another ISA manager to us. For the transfer of a Stocks & Shares ISA any investments held in your current ISA can be sold and the proceeds sent to us and invested in any of our unit trust funds.

You simply need to complete our Stocks & Shares ISA Transfer Form and we take care of the rest. Alternatively call 0808 005 5555 for full details. Lines are open weekdays 8am-8pm, Saturdays 9am-5pm.

Please note your existing ISA manager may levy an exit charge on transfer, and that during the period the transfer is being processed there is potential for loss of income and growth.

No. Our unit trust funds are operated by expert professionals who are closely monitored by our Investment Committee.

Marks & Spencer Money believes that customers want to make up their own minds about our products. While we don’t offer advice, we’re happy to provide factual information about any of our products to help you make informed choices. Please call our Investor Helpline on 0808 005 5555. Lines are open weekdays 8am-8pm, Saturdays 9am-5pm. For financial advice, please consult an Independent Financial Advisor.

Before applying you should read the simplified prospectus for the fund you’re planning to invest in – and our information for investors.

If you would like to open a Stocks and Shares ISA with a lump sum, complete our online application form.

If you would like to open a Stocks and Shares ISA with monthly savings or complete an ISA transfer, these are offered separately for you to print and complete.

Alternatively, you can apply by phone on 0808 005 5555. Lines are open 8am to 8pm Monday to Friday, 9am to 5pm on Saturday.

New unit prices are calculated for the funds at 8am each working day.

This is called the Valuation Point.

Instructions to buy units online received before 6pm Monday to Friday, or 5pm Saturday, which are successfully processed will receive the next 8am buying price. This is called forward pricing.

Monthly direct debit payments will usually be claimed on the 4th day of each month - or the next business day if the 4th is not a business day. Units will be bought at the buying price on this day.

There is a 10% tax credit on dividend distributions within the Worldwide Managed Fund, UK Selection Portfolio, UK 100 Companies Fund and Ethical Fund. This tax credit cannot be reclaimed. Stocks and Shares ISA investors in these funds will have no personal income tax liability in respect of distribution payments.

For Stocks and Shares ISA investors in the High Income Fund, interest distributions will be paid to you gross (no tax will have been deducted).

For Stocks and Shares ISA investors with accumulation units in the High Income Fund, the difference between the distribution reinvested back into the High Income Fund (and reflected in the unit price) net of 20% tax, and the gross distribution due to you will be used to buy further units for your account.

The value of any of the Stocks and Shares ISA tax benefits depends on your own personal circumstances. The tax benefits provided by a Stocks and Shares ISA are subject to Government legislation and may change in the future.

You can make a deposit via Debit Card. We accept Maestro, Visa Debit or Solo cards, which must be in your name and have enough cleared funds in the account.

Please note that we will only be deemed to be in receipt of your subscription when payment has been authorised by your debit card issuer. For online debit card payments received between 8am - 6pm Monday to Friday and 9am - 1pm on Saturdays the authorisation process will be completed immediately on receipt of your application. Outside these hours it may not be possible to carry out the debit card authorisation process immediately. This could delay the opening of your ISA until the next business day, with units being purchased for your Stocks and Shares ISA at the next 8am Valuation Point following the opening of your Stocks and Shares ISA.