The ikigai Stocks and Shares ISA
An easy, low-cost and tax-efficient* way to start investing.
When investing, your capital is at risk.
*Based on your circumstances. Subject to change.
What is a Stocks and Shares ISA?
It’s all in the name - the money that you contribute to your ikigai ISA is automatically invested in an investment portfolio of Exchange Traded Funds comprised of stocks, shares, bonds and other securities.
The government sets a maximum that you can deposit each tax year, which means for the year 2021-22, you get an allowance of £20,000 to invest tax-free.
So, why should you invest in a Stocks and Shares ISA?
Simple: Tax efficiency! Unlike a general investing account, a Stocks and Shares ISA is tax-protected, so you won't pay any taxes on the capital gains, income or interest on the money that you've invested.
It's one of the best ways to make sure more money stays in your pocket.
Not using an ISA is like leaving money on the table.
Let’s take an example. Say you contributed £20,000 per year into a general investing account for 5 years in a row. Let’s assume your investments grew steadily at 5% per year, so you have £116,038 invested by the end of the 5th year. If you withdraw this money, you would be liable for taxes on your earnings - a whopping £4,491 tax bill, assuming the current 28% capital gains tax rate.
But if you’d done the exact same thing and invested in a Stocks and Shares ISA, you wouldn’t have to pay a penny in capital gains taxes on it. That’s an extra £4,491 in your pocket - don’t leave money on the table and open an ikigai Stocks and Shares ISA today!
Open a Stocks and Shares ISA with ikigai
We'll take care of it for you
Simple and fast set-up
You have a choice of five fully managed, globally diversified portfolios each with a different risk level.
Open an account in minutes and start investing with as little as £1. No entry fee barriers.
Access to all ikigai has to offer
No strings and full transparency
Simply open an account and transfer money to start your ISA (you can even transfer your existing ISA). Unlike other providers, we charge no extra fees for you to open an ISA.
You'll have access to your account 24/7 so you can track your performance in real time. We also don't charge any withdrawal fees or account exit fees.
0.75% per year (charged monthly). There will also be a small fee charged by our fund providers. No commitments. Cancel anytime.
Many providers charge you to open an ISA, but we don’t believe there should be any penalty for being tax-efficient and smart with your money.
A quick overview of how our Stocks and Shares ISA works.
In order to open an ISA with us, you must:
- Be a UK tax resident and over 18
- Not have funded another Stocks and Shares ISA this tax year (i.e., since April 6th 2021)
- Have contributed less than this year’s ISA allowance (£20,000) to any other type of ISA
The government sets a limit for the amount you are allowed to contribute to your ISA(s) each tax year, which is £20,000 for the 2021-22 tax year. This allowance applies across all of your ISAs, so if you have a cash ISA and a Stocks and Shares ISA in 2021-22, the total you are allowed to contribute to both is £20,000 (e.g., £10,000 in your Cash ISA, and £10,000 in your Stocks and Shares ISA).
With the start of a new tax year, your ISA contributions “reset” to zero, so you can contribute an amount up to the new ISA allowance over the new tax year once again into existing ISAs (e.g., if your Stocks and Shares ISA contributions during the 2021-22 tax year are £20,000, you can start contributing to the same ISA once the 2022-23 tax year begins - you do not need to open a new ISA).
Note that your ISA allowance (£20,000 for 2021-22) is in addition to your tax free capital gains allowance (£12,300 for 2021-22), so you would likely need to be investing a significant amount before you are liable to pay capital gains taxes out of pocket.
Yes you can, and tax free! That is the glory of an ISA. Please note that the ISA allowance for your ikigai ISA is based on gross contributions so if you withdraw, this will not affect your ISA allowance status (e.g., if you contribute £13,000 to your ISA in the 2020-21 tax year, and withdraw £3,000 in the same year, you are still only allowed to contribute £7,000 more to your ISA for the remainder of the tax year).
The answer depends on the type of ISA. You may open and contribute to multiple ISAs in the same tax year, as long as they are different types of ISAs. There are six main types of ISAs: Stocks and Shares ISA, Cash ISA, Lifetime ISA, Help to Buy ISA, Innovative Finance ISA, and Junior ISAs (for your children under 18).
That said, you may only contribute to one Stocks and Shares ISA per tax year. You may have multiple Stocks and Shares ISAs each from different tax years, but you must make sure only to contribute to one. You may only have one ISA with ikigai.
Regardless of the type or number of ISAs, your contributions to your ISA(s) in a tax year must not exceed the ISA allowance for that tax year (£20,000 for 2021-2022, excluding Junior ISAs).
Tax treatment depends on individual circumstances and may be subject to change in the future.
The value of your portfolio with ikigai can go down as well as up and you may get back less than you invested. Returns are not guaranteed and any historical returns, expected returns, or probability projections referenced on our website may not reflect actual future performances. You should seek financial advice if you are unsure about investing.
ikigai is not a bank. ikigai is a trading name of Ikigai Invest Services Ltd, a company registered in England and Wales (Company number: 12011662). Ikigai Invest Services Ltd is registered with the Financial Conduct Authority (FCA) as an EMD Agent (reference number: 902740) of PayrNet Limited, an Electronic Money Institution authorised by the FCA (reference number: 900594) and is an appointed representative of WealthKernel (reference number: 723719) which is authorised and regulated by the Financial Conduct Authority. Registered address: The Harley Building, 77 New Cavendish Street, London, W1W 6XB, United Kingdom.
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