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first direct Stocks and Shares ISA

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The simple route to tax-efficient investments

The first direct Stocks and Shares ISA provides a tax shelter for up to £11,520 of your investments for this Tax Year - without registration fees or annual management charges. And as with everything we do, we've made it as simple as possible to use.

  • no registration fee or annual management charge
  • self-select the equities you want in your ISA
  • invest up to £11,520 in a Stocks and Shares ISA this Tax Year (less any amount you save in a cash ISA)
  • transfer in your existing cash ISAs and Stocks and Shares ISAs
  • please note this can take up to six weeks
  • trade online or by telephone
  • Your application for a first direct Stocks and Shares ISA only lets you invest in the current tax year so you'll have to complete a new application form for each new Tax Year.

The value of investments (and any income received from them) can fall as well as rise and you may not get back what you invested. For some investments this can also happen as a result of exchange rate fluctuations as shares and funds may have an exposure to overseas markets.

Remember, stock market investments should be viewed as a medium to long term investment (for at least 5 years).

The value of the tax advantages depends on individual circumstances, and tax rules may change in future.

We recommend you keep enough money (around six months salary) outside your investment portfolio.

first direct shares is an execution only sharedealing service. We don't give advice on sharedealing. This product is offered without advice and as such we are not required to assess the suitability of this product for you. This means that the protection offered by the Financial Services Authority rules on assessing suitability will not apply to this transaction.

 

first direct Stocks and Shares ISA at a glance

An ISA allows you to reduce the amount of tax you pay on your investments. So you can make even more of your money by wrapping your chosen investments within a first direct Stocks and Shares ISA - up to the current subscription limits. Currently, you can invest up to £11,520 in a Stocks and Shares ISA this Tax Year, less any amount you save in a cash ISA - which could be up to £5,760 this Tax Year. Any returns within the ISA will then be tax efficient, which means you don't pay income or Capital Gains Tax on them.

You'll find everything you need to know about the day to day running of the service in our more detailed FAQs, but in the meantime, you'll find the essentials to get you started below.

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Who is eligible to open a first direct Stocks and Shares ISA?

You must be an individual, aged 18 or over, who is either resident in the UK or working overseas as a Crown employee or married/in a civil partnership to such a person. In addition, you must not have subscribed to another ISA in the current Tax Year.
How do I open a first direct Stocks and Shares ISA?

You'll need a first direct Sharedealing Account as well as a 1st Account to hold the securities and enable the money transmission. You can then apply online or by phone for a first direct Stocks and Shares ISA or transfer an ISA from another financial institution.
How many ISAs can I have?

In each Tax Year you can subscribe to one Stocks and Shares ISA and one cash ISA. first direct shares offers a Stocks and Shares ISA only. For more information about other ISA products available from first direct, please select self select ISA overview.
How much can I subscribe in a first direct Stocks and Shares ISA?

Because of their great tax advantages, ISAs are subject to annual subscription limits. The overall ISA subscription limit is £11,520 for the current Tax Year. However you're not completely limited. You can save up to £5,760 of this overall limit in a cash ISA with one provider and the remainder of the £11,520 can be invested in a Stocks and Shares ISA with either the same or another provider. Alternatively, the full £11,520 can be invested in a Stocks and Shares ISA with one provider.
How much does it cost?

There's no registration fee or annual management charge to trade inside a first direct Stocks and Shares ISA. See our Interest rates and charges PDF full details of all our Sharedealing rates and charges.
What are the tax advantages of subscribing to a Stocks and Shares ISA?

Normally, income from UK shares is paid with a dividend tax credit. The tax credit can not be reclaimed regardless of whether the shares are held directly, or within a collective investment. This applies whether an investment is within or outside an ISA. Outside an ISA, lower and basic rate tax payers have no further income tax liability, but higher rate tax payers will have additional income to pay. However, if held within an ISA, all investors, including higher rate tax payers, have no further liability to income tax. By investing in an ISA you are also protected from paying any Capital Gains Tax on increases in the value of your investment.

Please note, you would only pay Capital Gains Tax on the increased value of an investment outside an ISA when the policy proceeds are taken and when the ‘ gain’ exceeds £10,900.
What happens to dividends received from shares held in my first direct Stocks and Shares ISA?

We will collect any dividends paid on the investments held in your ISA and credit them to your ISA settlement account.
Do I receive interest on cash held within my first direct shares ISA?

Yes. To view our current rates please select sharedealing current rates within your sharedealing service. To view our previous rates select sharedealing previous rates. Interest on cash held within the Stocks and Shares ISA is subject to a flat charge levied by HM Revenue and Customs, which is currently 20%.
What happens to the money if I sell some shares within my ISA but haven't decided what to buy next?

Surplus cash may be held in an ISA pending a suitable investment opportunity. You will receive interest on the money that is being held for investment purposes. However, for cash held in a Stocks and Shares ISA there will be a 20% charge applied by HM Revenue and Customs on this earned interest. HM Revenue and Customs regulations state that we will write to notify you of any uninvested cash held within the ISA.
Can I transfer my ISAs to you?

Yes. Just complete a transfer form. You'll find the form in the 'ISA' section of the 'products and services' page. You can print the form, then complete it following the instructions on the page. Once we receive your form we will liaise with your current ISA manager to complete the transfer.

We can accept all Stocks and Shares ISAs. You can instruct us to arrange with your current ISA manager to either transfer your shares to us or to sell these and transfer the settlement proceeds. Please note - your current ISA may contain investments which are not traded by first direct. These investments will need to be sold and the proceeds transferred as cash if you want to transfer your ISA to us. Both the shares and cash must pass directly from your current ISA manager to us; they must not be transferred out of the ISA.

Please note the transfer process can take up to six weeks.

 

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How to register for Sharedealing

Already a customer?

Once you have completed the online Sharedealing application, please wait for confirmation that your account is open before sending in any share certificates or applying for a Stocks and Shares ISA.

It normally takes 2-6 weeks to transfer shares into your nominee account.

Register for Sharedealing

Not yet a customer?

To join our Sharedealing Service you will also need to open a first direct 1st Account, our current account.

Learn more about the 1st Account

You can also talk to us on:
0800 24 24 24

Before you apply, please read the following:

Key Features Document

Sharedealing Terms and Conditions

Interest rates and charges

Our downloads are in a PDF format. To read them you'll need to have Adobe Read 4.0™ or above - it's free and you can get Adobe Reader here.

You can find general information about financial products and managing your money on the Money Advice Service ™ website.

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