Stocks and shares ISA centre

More ISA questions

More New ISA questions

How does Nutmeg manage my ISA?

When you set up an ISA with Nutmeg, we put the ISA wrapper on your account as a whole. This means that you can create as many funds as you like — from paying for your children's education to buying a new home — and don't have to worry about which one is your ISA fund. We'll automatically count every contribution towards your ISA allowance until you reach the limit.

When we decide which investments should be inside your ISA wrapper, we always choose the ones which would benefit most from the tax advantages. And when you make a withdrawal from your account, we'll first sell any investments that are not in your ISA. This means that you won't lose a portion of your ISA allowance unnecessarily.
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Can I transfer existing investments to Nutmeg?

You can transfer Stocks and Shares ISAs to Nutmeg. However, your existing investments will be sold and the money transferred as cash. We will then invest your Stocks and Shares ISA on your behalf, in accordance with our investment strategy.
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If I transfer an ISA to Nutmeg, will it still have an ISA wrapper?

Yes. Any ISA transfers will continue to be sheltered from tax.
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Can I invest more than the ISA limit with Nutmeg?

Absolutely — although investments outside your ISA will be subject to tax. When we decide which investments should be inside your ISA wrapper, we always choose the ones which would benefit most from the tax advantages.
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I had a Stocks and Shares ISA elsewhere last year, and I want to open one with Nutmeg this year. What should I do?

First, you need to find out whether your previous ISA has rolled over into this year. You should be able to do this by contacting your provider, or by checking their terms and conditions. If the ISA does roll over, we can help you transfer it to us. If it doesn't roll over, you will be able to open a new ISA with Nutmeg (and, if you want, transfer the old one as well).

Nutmeg ISAs automatically roll over from one tax year to the next — unless you tell us otherwise.
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How much is the ISA allowance?

Full Stocks and Shares ISA allowances by tax year:

2016/2017 — current tax year £15,240
2015/2016 — previous tax year £15,240
2014/2015 £15,000

The full Stocks and Shares ISA allowance for the tax year 2016/2017, as of 6th April, is £15,240. You can choose to contribute any portion of that to a Cash ISA and the remainder to a Stocks and Shares ISA. Nutmeg does not offer Cash ISAs.

Read our ISA guide »

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What happens if I pay too much into my ISA?

When you set up an ISA with Nutmeg, we'll ask you if you want to set a limit for your ISA — for example if you hold a Cash ISA elsewhere. Setting a limit helps make sure you don't pay too much into your Nutmeg ISA.

If you (or we) make a mistake, please let us know as soon as possible and do not try to correct the mistake yourself. In some circumstances an over-subscribed ISA could become void. For more information visit the HMRC ISA FAQs.
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I have a Nutmeg portfolio but haven't yet added an ISA wrapper. What happens if I do so?

Opening an ISA once you have an account with us is easy — just log in and click on the links to "Transfer an ISA to Nutmeg". We offer two options as to what happens to your existing investments.

1) We can transfer your current Nutmeg holdings into your ISA, up to the ISA limit you set, at our next investment cycle.

2) Alternatively, you could instruct us to keep your present portfolio invested, and only apply new contributions to your ISA. This means that your current holdings would remain in a taxable account.
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What are the tax benefits of an ISA?

ISAs are great for dividends

For higher-rate and additional-rate taxpayers, dividends earned from non-ISA investments incur tax of 32.5% to 37.5% (although 10% of this is automatically deducted before you receive the dividends). However, if you’re investing via an ISA, you pay only 10% tax on the dividends. Basic rate taxpayers don’t pay additional tax on dividends regardless.

ISAs are great for bonds

If you use your Stocks and Shares ISA for interest-bearing investments, such as corporate bonds and gilts, the interest is entirely tax-free. £10,000 invested in bonds paying an average interest coupon of 4% would grow to £21,911 over 20 years, assuming no fall in capital values and coupons are re-invested. The same amount held outside an ISA, and subject to additional tax payers rate of 45% tax, would be worth £15,453.

ISA means no capital gains

Any gains made by investments within your ISA are not subject to capital gains tax.

ISA means simpler tax returns

For most people, income and capital gains from ISAs do not have to be reported on your tax return. Nutmeg will send you a Consolidated Tax Voucher at the end of each tax year.
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Will Nutmeg be offering a help-to-buy ISA?

It’s unlikely. The help-to-buy ISA is for cash savings only, not investments, and we are an investment manager. The government has said that help-to-buy ISAs will be made available through banks and building societies. It’s still early days though and we are reviewing all the regulations surrounding the help-to-buy ISA scheme in detail.

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Didn't see your question?

Get more answers in our ISA support section, or the HMRC ISA FAQs.

Please bear in mind
A Stocks and Shares ISA may not be right for everyone and tax rules may change in the future. If you are unsure if an ISA is the right choice for you, please seek independent financial advice.