Some Select Invest deals are now ISA eligible which means you can use your annual tax-free ISA allowance towards self-select deals.
When is the interest paid for ISA eligible Select Invest deals?
Interest is paid only on maturity with the applied compound interest rate. You cannot have an interest paid monthly option on ISA Select Invest at the moment. If you have used your entire ISA allowance you will be unable to re-invest your interest at this time. The team are working on this as a high priority and we hope to be able to offer this shortly.
Can I sell my ISA investments on the secondary market?
At this point in time, you can not sell your ISA Select Invest investments on the secondary market.
When does an ISA self-select investment go live for reserve investments?
Your investments start on the day the deal is set from reserve to live. You'll still receive a reserve cashback on the select invest ISA investment
What happens if a reserve deal is cancelled?
Your funds are returned to the wallet and your ISA allowance is reset
Can I transfer any existing ISA investments I have into a new Select-Investment eligible for ISA?
Not at the moment. Only new funds can be placed into these, keeping within the £20,000.00 ISA allowance per tax year.
Can I still open a normal IF-ISA term as well as use the Select-Investment eligible for ISA product?
Yes, you can do both, as long as you keep within the ISA allowance limit (£20,000 for the 2021/22 tax year).
What happens at the end of these ISA eligible Select-Investments when the loan term finishes?
The system tags investments within the tax year when the investment was made.
For investments that run across tax years, on the date of the tax year change, the investments are marked such that they are not a part of the calculation for the current tax year.
Income earned will be displayed for the tax year when the interest actually hits the system - this could be across various tax years depending on loan terms etc
Since income earned / capital repayments are tagged/attached to a tax year, the segregation of funds allows the user's allowance to remain protected as long as the funds are sitting in the designated wallets.
Once the funds have been removed from the designated ISA wallet (current or historic) into the cash wallet, the funds lose their tax allowance protection
The ISA wallet is created and operational. It will be viewable by users in the next major release which is about a month or so away.
Updated 28th August 2021