Introduction to Stocks & Shares ISA
Investors are allowed to hold multiple and different securities instruments in their S&S ISA portfolio. The portfolio can accommodate stocks and shares, as well as cash. The key limitation is that the overall amount of money invested must not exceed the annual ISA allowance. This module supports the managing of adult and junior S&S ISAs, allowance monitoring, additional permitted subscription allowance and flexibility.
The Stock and Share (S and S) ISA is a new type of ISA, where each taxpayer has an annual investment limit (£20,000 since 2020/21) that can be split among the four types as desired. Additionally, children under 18 may hold a Junior ISA, with a different annual limit (£9,000 since 2020/21).
The ISAs are sometimes referred to as tax wrappers because the money investors hold in them is sheltered from both Income Tax and Capital Gains Tax.
This functionality allows users to create an S and S ISA portfolio that accommodates stocks and cash and ensures that the portfolio contains eligible instruments only and is owned by a single owner who qualifies for the ISA scheme and has provided an ISA declaration. Also, the bank can prevent the customer from the oversubscribing during the financial year.
The following ISA types were introduced in the XISA property class with which banks can customise their new ISA products.
- B – Stock & Share ISA.
- D – Junior Stock & Share ISA.
- G – Flexible Stock & Share ISA.
This functionality enables banks to open accounts under the Non-Flexible Stock & Share ISA, Flexible Stock & Share ISA or Junior Stock & Share ISA AA products. Also, this functionality allows banks to regularly levy platform fees and management charges from the Stock & Share ISA portfolio and, whenever the customer buys or sells an investment using the Stock & Share portfolio, the system will automatically apply the corresponding buying or selling charges.
With this functionality the following items were introduced:
- The
POLICY.PARAMETER,UK.ISAversion has been delivered for the ISA manager to setup the instrument classification for the Stock and Share portfolio. - The
SEC.ACC.MASTERversion allows the user to create a Stock and Share ISA portfolio.
Product Configurations
The following products are released as part of this module.
Non-Flexible Stock & Share ISA
The following table provides information related to the Non-Flexible Stock & Share ISA product.
|
Characteristic |
Default values |
Client configuration options |
|
|---|---|---|---|
|
At product level |
At account level |
||
|
Eligibility |
UK resident, NINO available Age 18 and above ISA declaration |
Yes |
n/a |
|
Joint Holders |
Not allowed |
n/a |
n/a |
|
Available Currencies |
GBP |
n/a |
n/a |
|
Maturity |
n/a |
n/a |
n/a |
|
Interest |
|
|
|
|
Rate |
0% p.a. |
Yes |
n/a |
|
Day basis |
Day basis - E 366 / 365 |
This can be configured to any supported day basis |
n/a |
|
Accrual |
Accrual from start date of arrangement and include closure day. |
n/a |
n/a |
|
Capitalisation |
Capitalise credit interest annually on the last day |
Yes. |
n/a |
|
Fees & Charges |
|
|
|
|
Maintenance |
Maintenance fee £0 |
Yes. Amount and period. |
n/a |
|
Transaction Fee |
Withdrawal fee £0 |
Yes. Amount and free transactions per period (month, quarter, year) |
n/A |
|
Closure Fee |
Closure fee £0 |
Yes. Amount. |
Yes. Can be dropped. |
|
Early redemption |
n/a |
n/a |
n/a |
|
Servicing |
|
|
|
|
Statements |
Statements are produced quarterly on the last day of the month |
The frequency and date of statement production is configurable. |
n/a |
|
Taxation |
Excluded from BBSI reporting Subject to Annual ISA Return of Information |
n/a |
n/a |
|
Payments |
Internal and domestic (Bacs, FPS, CHAPS) only. |
n/a |
n/a |
|
Restrictions |
|
|
|
|
Funding |
From any account up to annual ISA allowance |
n/a |
n/a |
|
Withdrawals |
No restrictions. Withdrawals do not restore utilised allowance. |
n/a |
n/a |
|
Balance |
£1 - £250,000 |
Yes |
n/a |
|
Overdrafts |
Not allowed |
n/a |
n/a |
Flexible Stock & Share ISA
The following table provides information related to the Flexible Stock & Share ISA product.
|
Characteristic |
Default values |
Client configuration options |
|
|---|---|---|---|
|
At product level |
At account level |
||
|
Eligibility |
UK resident, NINO available Age 18 and above ISA declaration |
Yes |
n/a |
|
Joint Holders |
Not allowed |
n/a |
n/a |
|
Available Currencies |
GBP |
n/a |
n/a |
|
Maturity |
n/a |
n/a |
n/a |
|
Interest |
|
|
|
|
Rate |
0% p.a. |
Yes |
n/a |
|
Day basis |
Day basis - E 366 / 365 |
This can be configured to any supported day basis |
n/a |
|
Accrual |
Accrual from start date of arrangement and include closure day. |
n/a |
n/a |
|
Capitalisation |
Capitalise credit interest annually on the last day |
Yes. |
n/a |
|
Fees & Charges |
|
|
|
|
Maintenance |
Maintenance fee £0 |
Yes. Amount and period. |
n/a |
|
Transaction Fee |
Withdrawal fee £0 |
Yes. Amount and free transactions per period (month, quarter, year) |
n/A |
|
Closure Fee |
Closure fee £0 |
Yes. Amount. |
Yes. Can be dropped. |
|
Early redemption |
n/a |
n/a |
n/a |
|
Servicing |
|
|
|
|
Statements |
Statements are produced quarterly on the last day of the month |
The frequency and date of statement production is configurable. |
n/a |
|
Taxation |
Excluded from BBSI reporting Subject to Annual ISA Return of Information |
n/a |
n/a |
|
Payments |
Internal and domestic (Bacs, FPS, CHAPS) only. |
n/a |
n/a |
|
Restrictions |
|
|
|
|
Funding |
From any account up to annual ISA allowance |
n/a |
n/a |
|
Withdrawals |
No restrictions. Withdrawals restores utilised allowance. |
n/a |
n/a |
|
Balance |
£1 - £250,000 |
Yes |
n/a |
|
Overdrafts |
Not allowed |
n/a |
n/a |
Junior Stock & Share
The following table provides information related to the Junior Stock & Share product.
|
Characteristic |
Default values |
Client configuration options |
|
|---|---|---|---|
|
At product level |
At account level |
||
|
Eligibility |
UK resident, NINO available Age < 18 ISA declaration Registered contact mandatory until investor reaches the age of 16 |
Yes |
n/a |
|
Joint Holders |
Not allowed |
n/a |
n/a |
|
Available Currencies |
GBP |
n/a |
n/a |
|
Maturity |
At 18th birthday |
n/a |
n/a |
|
Interest |
|
|
|
|
Rate |
0% p.a. |
Yes |
n/a |
|
Day basis |
Day basis - E 366 / 365 |
This can be configured to any supported day basis |
n/a |
|
Accrual |
Accrual from start date of arrangement and include closure day. |
n/a |
n/a |
|
Capitalisation |
Capitalise credit interest annually on the last day |
Yes. |
n/a |
|
Fees & Charges |
|
|
|
|
Maintenance |
Maintenance fee £0 |
Yes. Amount and period. |
n/a |
|
Transaction Fee |
Withdrawal fee £0 |
Yes. Amount and free transactions per period (month, quarter, year) |
n/A |
|
Closure Fee |
Closure fee £0 |
Yes. Amount. |
Yes. Can be dropped. |
|
Early redemption |
n/a |
n/a |
n/a |
|
Servicing |
|
|
|
|
Statements |
Statements are produced quarterly on the last day of the month |
The frequency and date of statement production is configurable. |
n/a |
|
Taxation |
Excluded from BBSI reporting Subject to Annual ISA Return of Information |
n/a |
n/a |
|
Payments |
Internal and domestic (Bacs, FPS, CHAPS) only. |
n/a |
n/a |
|
Restrictions |
|
|
|
|
Funding |
From any account up to annual Junior ISA allowance |
n/a |
n/a |
|
Withdrawals |
Not allowed |
n/a |
n/a |
|
Balance |
£1 - £250,000 |
Yes |
n/a |
|
Overdrafts |
Not allowed |
n/a |
n/a |
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