Artemis Announces ISA Discount

Artemis Investment Managers has announced it is offering a 1% discount on ISA investments with immediate effect.

Nick Wells , product and communications director, said: “The Chancellor’s decision to extend the current ISA structure beyond 2010 has given them a welcome permanence, which makes them an even more mainstream part of the discussion between investors and their advisers. There are certainly signs that the retail market will be very active over the coming months.”

In his pre-budget report the Chancellor confirmed that the distinction between mini and maxi ISAs would be removed and that it would be possible for investors to transfer money in cash ISAs into equities without losing tax relief, although moving from equities to cash is not allowed. Investors will now have the freedom to move these cash ISAs into stocks and shares ISAs.

ISAs were set up by the Government in 1999 to replace PEPs which, since 1987, had encouraged people to save by offering a "wrapper" within which their investments would not be adversely affected by tax.

ISAs work on the same principle as PEPs whereby any profits or dividends generated by savings within the ISA are tax-free. All adults resident or ordinarily resident in the United Kingdom over the age of 16 (Cash ISAs only) and 18 (Stocks and Shares ISAs) are entitled to make use of ISAs. The most fundamental element of ISAs is that all profits are tax-free.