How do ISAs work?
An ISA shelters your investments from personal income tax and capital gains tax.
You can subscribe to an ISA if you are:
- Aged 18 or over (16 or over for a cash ISA)
- Resident and ordinarily resident in the UK for tax purposes
There are four main types of ISAs; investing in either stocks and shares ISA, cash ISA, Innovative Finance ISA or a Lifetime ISA.
- You can invest up to £20,000 in your ISA during the 2022/2023 tax year
- You can transfer money held in an ISA from stocks and shares into cash and vice versa, without affecting your annual allowance
- You can choose how to split your tax-efficient savings yourself. For example, you can save the full amount in stocks and shares or the full amount in cash – or you can invest in a combination of the two depending on your individual investment needs
The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.
The tax rules for ISAs may change in the future, and their tax advantages depend on your individual circumstances.
Please note that any losses made in an ISA cannot be used to offset gains elsewhere.
The views expressed on this page should not be taken as a recommendation, advice or forecast.
The M&G ISA
The M&G ISA is a stocks and shares ISA only. Due to our focus on long-term investing, The M&G ISA is not a Flexible ISA, Innovative Finance ISA or a Lifetime ISA.
The tax rules for ISAs may change in the future, and their tax advantages depend on your individual circumstances.
The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.
Share classes and charges
We like to keep our charges simple. For private (non-advised) investors there are only two share classes to choose from when you invest.
- Sterling Class A Shares are for those with holdings up to £499,999
- Sterling Class I Shares are for fund holdings over £500,000
Learn more about share classes on our Share Classes page, or by downloading our Important Information for Investors document where you can find information about the specific share classes available in your choice of fund(s).
Income or accumulation?
Once you have chosen your share class, you need to decide how you would like your money to work for you.
You can choose to receive an income from your investment and have this paid into your bank account, or you can choose to have any income your investment generates kept within your fund to add to your investment; this is known as accumulation.
- Accumulation shares - Accumulation shares keep income within the fund rather than paying it out. Funds with Accumulation shares are shown with Accumulation (or Acc) after their fund name.
- Income shares - If you would prefer to receive an income from your investments, you can choose income shares when you invest. Funds with income shares are shown with Income (or Inc) after their fund name. With income shares the income could be paid monthly, quarterly, six monthly or annually depending on the fund.
If you currently reinvest your income to purchase further shares of the same fund, you can continue to do so. However please note that where income from underlying investments is saved up within the fund throughout the accounting period and reinvested to buy more shares on the reinvestment date, the income is not exposed to any market movements (up or down), unlike accumulation shares which reinvest income automatically once received.
Charges
We don’t apply entry or exit charges to investments in M&G funds Sterling Class shares. However, there is an ongoing charge which will vary per fund. The ongoing charge is made up of the Annual Charge which may be discounted depending on the size of the fund, and extraordinary expenses. For property funds, the ongoing charge does not take into account the property operating expenses, also known as PER. For information on all our charges, please refer to our Fund Charges page.
Please read the Important Information for Investors document for more information on share classes, charges and share types.
Investment Limits (per fund)
The table below shows the minimum investment limits in The M&G ISA. From 6 April 2022 to 5 April 2023 the maximum you can invest in an ISA is £20,000. Please note that M&G only offer a stocks and shares ISA.
| Investment minimums (per fund) | |
|---|---|
By monthly Direct Debit |
By lump sum investment |
Initial amount of £10 |
Initial amount of £500 |
Top-up amount of £10 |
Top-up amount of £100 |
Target Market Information
This document explains who we believe the product is, and is not, suitable for. This is based on M&G’s opinion and doesn’t take into account your individual circumstances.
Funds available
You can invest in any of our funds in the Fund Centre.
The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested. Please be aware, your investment may increase or decrease as a result of currency fluctuations.
Invest now
For information on making an investment with M&G, please visit our Invest with M&G page.
We don’t give financial advice, so you should speak to a financial adviser if you need help deciding if an investment is right for you.
Additional Permitted Subscription (APS) ISA
An APS ISA allowance is an additional allowance which you are granted on the death of your spouse or civil partner. You can either use your allowance by transferring the cash to us so you can buy M&G funds or, where you have inherited the deceased's assets, instruct an in-specie transfer. Further information can be found in our APS section.
