The Funding ISAs calculator provides an indication of comparing;
- a lump sum investment is retained into a collective portfolio, or
- each year withdrawing an amount which is then invested into an ISA.
If a client has money invested, such as in Collectives, and is not using their ISA allowance in full then they should consider moving money from that investment into an ISA.
Particularly as the current maximum ISA allowance is £20,000 per annum.
Plus since 1st July 2014 there has been the added flexibility of moving from Cash to Stocks & Shares, and now from Stocks & Shares to Cash.
Each year, clients should always consider utilising their tax allowances and tax-efficient investments.
This calculator demonstrates the value of moving money each year from a Collective investment into an ISA investment. The investment to the ISA will be Part of Disposals from the Collective investment.
The calculator compares;
- the value of the Collective investment, &
- the total value of the ISA investment and the remaining Collective investment.
These values, of using and not using the ISA allowance, are demonstrated in a line chart. A bar chart also shows the breakdown of the total fund between the ISA and Collective investment.
The figures/calculations of the investment fund values are also shown.