Investment Overview

Investing money needs careful consideration and you need to be absolutely sure of the risks involved. You should seek advice appropriate to your specific circumstances prior to making any decisions.

The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.

Tax treatment varies according to individual circumstances and is subject to change.

Investors do not pay any personal tax on income or gains, but ISAs do pay tax on income from stocks and shares within the funds.

This at-a-glance guide is designed to give you a quick snapshot of a range of different investment vehicles available.
Deposits may be held in:
  • Commercial banks
  • Building societies
  • ISAs
National Savings and Investments have a number of different instruments*:
  • Premium Bonds
  • Income Bonds
  • Investment account


Asset-backed investments can be held in:
  • Shares
    • Issued by companies to raise money
    • Dividends related to profitability (taxable if exceed Dividend Allowance)
    • Potential Capital Gains Tax on realised gains when shares sold 
  • Gilt-edged Securities
    • Government guaranteed
    • Fixed rate of interest or coupon
    • Interest liable for tax (unless covered by allowances such as Personal Savings Allowance)
    • Full nominal value repaid at redemption date
    • Some Gilts index linked
    • No Capital Gains Tax on Gilts 
  • Unit trusts
    • Investors’ money pooled to form large funds
    • Medium to long-term investments in stocks and shares and other asset types
    • Broad spread for greater security
    • Professional fund management
    • Units priced on the basis of the value of the underlying investments
    • Income distributed or re-invested
    • Income liable for tax (unless covered by allowances such as Personal Savings Allowance or Dividend Allowance)
    • Potential for Capital Gains Tax
  • Cash ISA
    The overall limit for investment in ISAs is £20,000 and the whole amount can be placed in a Cash ISA if required. It’s possible to transfer Stocks and Shares ISAs into a Cash ISA and vice versa.
  • Stocks and Shares ISA
    You can invest the full £20,000 ISA allowance into a  Stocks and Shares ISA if you wish. Investors do not pay any personal tax on income or gains.
  • Investment trusts
    • Pooled investments run by limited companies
    • Medium to long-term investments
    • Professionally managed
    • Stock market determines the price so shares can trade at a discount or a premium to the underlying asset value
    • The funds are 'closed-ended'  
  • Open ended investment companies (OEICs) or unit trusts 
    • Pooled investments run by limited companies
    • Medium to long term investments
    • Professionally managed
    • Single pricing based on the net asset value
    • Charges expressed separately
    • The funds are 'open-ended'  
  • Investment bonds
    • Single premium (i.e. lump sum investment)
    • Non qualifying life assurance policy
    • Medium to long-term investments
    • With profit or unit-linked
    • Withdrawals possible
    • No personal liability for basic rate Income Tax or Capital Gains Tax (assuming a UK bond)
    • Withdrawals may trigger a liability to higher rates of tax or personal allowance 

The Financial Conduct Authority (FCA) does not regulate advice on deposits or national savings & investments products.



Investment Overview

Get in touch