Investment Management and Stockbroking Services

Tax efficient investing

• ISA
• SIPP

Introducing the Rowan Dartington ISA
The intelligent solution to tax-efficient investment

What is a Rowan Dartington ISA?

It is an Individual Savings Account (ISA) which allows you to invest up to £7,200 (£10,200 if you are over 50) annually without paying capital gains tax on investment gains made within an ISA. Additionally, all dividend income received is not liable to further tax with the added bonus that interest income received can be free of all income tax. This allows you to build an effective and diverse portfolio of investments within a tax-efficient ‘wrapper’. Better still, the ISA allowance will be increased to £10,200 from April 2010, for all investors.

What are the benefits?
Tax-efficiency	A Rowan Dartington ISA is extremely tax-efficient, because you do not have to pay capital gains tax (CGT) on the investments held within the ISA wrapper. From April the ISA allowance will increase to £10,200 for all investors. In the current economic climate, it could be a good time to lock up your investment and leave it to grow over the longer term, free from the erosive effects of CGT.
Long term potential	For shrewd investors, we believe that the Rowan Dartington ISA offers an intelligent opportunity to take advantage of tax free gains. For those who can commit their chosen funds to a longer term investment - we would suggest 5 years as a minimum - the growth potential within the stock market is much greater, despite its rises and falls. Given time, shares are likely to outperform cash and your gains will be greater.
Flexible contributions	You can choose to invest your full entitlement in a single yearly lump sum, or in monthly instalments, whichever suits your circumstances.
Unused allowance	If you have an ISA account open with another provider, but have not used your full ISA allowance for this tax year, you can transfer the ISA account to a Rowan Dartington ISA anytime you like and top it up to the full amount for the current year. Additionally, if you don’t currently have an ISA you can apply to subscribe your full allowance to a Rowan Dartington ISA. If your ISA allowance for any one tax year is not used, it is lost and could result in you needlessly paying Income or Capital Gains Tax whether now or in the future.

Understanding your stocks and shares ISA

What are the limits?

Because of the very favourable tax advantages offered by an ISA, there are limits imposed on how much you can invest each tax year. However, these are about to rise. From October 2009 the maximum investment for investors aged over 50 increased to £10,200 and this will be extended to all investors in April 2010.

Do you provide investment advice?

At Rowan Dartington we can provide you with clear, professional advice for your investment plans. We will spend time discussing your individual needs and work closely with you to create the right portfolio of investments; from OEICs, unit trusts, investment trusts, ethical funds or overseas investments to the more cautious options of gilts and bonds.

Our aim is to match your attitude to risk and your financial goals as they develop. The very nature of the Rowan Dartington ISA allows you to alter the investments held within your ISA at any time so you can take advantage of investment opportunities as they arise as well as ensuring your ISA reflects your investment objectives over time. For example, perhaps primarily looking for capital growth when you are younger and switching towards income as you enter retirement.

Can I transfer from an existing ISA?

Yes, you have the freedom to transfer from a current or past years’ Stocks and Shares ISA, but it works in a slightly different way:

• Current year. You can move all your entitlement to our Rowan Dartington ISA, but you can’t split it between more than one Stocks and Shares ISA, or move to a cash ISA.
• Past year. In this case you can move all your investments to our Rowan Dartington ISA, or split it between more than one.

How long should I invest for?

The Rowan Dartington Stocks and Shares ISA is designed to make the most of your investments through the stock market. Though there will be short-term fluctuations in the value of what you put in, the market movements over the long-term should level them out. The key is committing to the longer term – 5 years should be seen as a minimum.

What if I need to withdraw my money?

You are free to take out your funds at any time, but once the money is removed you cannot re-invest it in the ISA, and you cannot exceed the annual subscription limit.

How do you invest my money?

As Rowan Dartington is a fully independent broker, we have access to the whole market – all ISA eligible stocks from investment trusts to direct equities. We invest your money based on our professional expertise and your personal aims.

Our research identifies the best investment ideas for our clients and we place a great deal of emphasis on this initial analysis. Ultimately the decision you make is based on the information you receive about the markets and the individual stocks and shares and that’s why we’re dedicating more of our resources to analysing companies and markets, searching for the best ideas.

What does my investment executive do?

Once you have set up your Rowan Dartington ISA and subscribed, you can make investment decisions with the help and advice of a Rowan Dartington Investment Executive. If you prefer, you can delegate control to have your investment managed on a discretionary basis. Please ask your Investment Executive for further information about this service.

Can I monitor my investment easily?

In short, very easily and whenever you wish. In addition to regular statements and valuations, you can access your ISA online in our secure area.

Where can I find out more?

Simply speak to your Investment Executive, call us on
0800 141 22 44 or visit your local branch.

To apply to subscribe to an ISA, please click here.

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