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Setting up my account

Can you help me decide which investment is right for me?

We cannot give you financial advice, but if you have any questions about Virgin Money ISAs, please call us on 03456 102020.* Our lines are open 8am - 9pm Monday to Friday and 9am - 6pm on Saturdays. If you need advice you can search for an independent financial adviser at www.unbiased.co.uk.

*Calls to 03 numbers cost the same as calls to 01 or 02 numbers and they are included in inclusive minutes and discount schemes in the same way. Calls may be monitored and recorded.

Do I have to send in identification to open my account?

We are required to verify our customers identity and will try and do this electronically wherever possible when opening your account. In some instances we may need to write to you after we've set up your account and ask you to send us proof of identity and address.

Can I transfer another ISA to Virgin Money?

Yes, apart from transfers from Lifetime ISAs which we don't accept, whether it's an ISA from a previous tax year or one you're paying into this tax year, you can transfer it to Virgin Money.

If you're interested in transferring a stocks and shares ISA, cash ISA or innovative finance ISA to a Virgin Money Stocks & Shares ISA, visit our ISA transfer page or call us on 03456 102020.*

*Calls to 03 numbers cost the same as calls to 01 or 02 numbers and they are included in inclusive minutes and discount schemes in the same way. Calls may be monitored and recorded.

How can I make payments into my investment?

For stocks and shares ISAs and unit trusts, you can make payments by cheque, debit card or by direct debit. Cheques will need to be sent via post, we can set up a Direct Debit via post or phone and debit card payments can be made via phone or via our online service. ISA (APS) payments must be made via postal cheque.

Can I open an account if I'm not a UK resident?

To open an ISA, you have to be resident in the UK for tax purposes for that tax year. You can open a unit trust without being a UK resident as long as you are not a resident or tax payer in the USA.

Operating my account

What happens if I change my mind after setting up a stocks and shares ISA?

There are no cancellation rights with our stocks and shares ISA, so once you’ve made a payment or transferred in any existing ISA(s) into your Virgin Money Stocks & Shares ISA, you cannot cancel it. You can of course decide at any time to transfer the ISA to another registered ISA manager or to withdraw your ISA proceeds.

How do I take my money out?

Once your investment has cleared, you can withdraw your money over the phone or online whenever you need it. Your cheque should normally arrive within a few working days. The only exception to this is if you have a corporate unit trust, or a unit trust held in joint names, where you need to write to us to take your money out.

How do I pay in to my PEP account?

As you are no longer allowed to make payments into this account, you will need to open a new ISA and make a deposit, either online or over the phone on 03456 102020*.

*Calls to 03 numbers cost the same as calls to 01 or 02 numbers and they are included in inclusive minutes and discount schemes in the same way. Calls may be monitored and recorded.

How ISAs work

What’s the difference between cash ISAs and stocks and shares ISAs?

A cash ISA is just like a basic savings account where you get a return based on an interest rate. No tax is taken from the interest you earn, meaning you can earn more from your savings.

A stocks and shares ISA is a tax efficient investment where money buys bonds or shares in companies on the stock market. The aim of the investment is to grow your money using the potential growth opportunities, but there are no guarantees because the value can go down as well as up. You might not get back the amount you invested and past performance of the investment is not a reliable guide to the future.

Choosing the right ISA for you depends very much on your approach to risk. If you want a low risk account, cash ISAs could be for you. But if you want the chance to earn a higher return, you might want to look at one of our stocks and shares ISAs.

Tax depends on your individual circumstances and the regulations may change in the future.

What about the risks of investing in shares?

Investing in stock market shares is not without its risks. They can rise in value over many years, go into periods of decline, or fall suddenly in value, with no guarantee you'll get back the full amount you invest. The key thing to remember is, the longer you stay invested in the stock market the better you tend to do.

If you only invest in a handful of shares over the short term you'll certainly increase your risk. But by investing over many years and spreading your savings over a wide range of shares, you lessen that risk and actually increase your chances of getting a good return.

If the stock market falls do I lose my money?

History shows that investors shouldn't be too concerned with short-term stock market falls. Those who cash in their investments, instead of taking a longer term view, will lock in their losses. If you can take the longer view then markets can regain their losses. For example, in 1987 the UK market finished the year higher than it started in January, despite falling 32% in the October 87 'crash'.

However, if the market goes into a longer fall (known as a 'bear market') it can sometimes be some years before you start to see a return on your money. As ever, time is the key, and you should only consider investing money you can afford to tuck away for at least five years.

Remember, the value of your investments can go down as well as up and you may get back less than you invest. This is a medium to long-term investment so you should be prepared to invest your money for at least five years. Tax depends on your individual circumstances and the regulations may change in the future.

How much can I invest?

You can save up to £20,000 each tax year, all of which can be:

  • Held as cash (in a cash ISA)
  • Invested in the stock market (in a stocks and shares ISA)
  • Lent to other individuals or companies as a loan (in an innovative finance ISA)
  • Up to £4,000 towards saving for your first home or your retirement with a 25% top up from the Government (a Lifetime ISA)

Or any combination of these.

Remember, tax depends on your individual circumstances and may change in the future.

Investments and tax regulations

Are dividends on my investment subject to tax?

The Dividend Allowance means that you won’t have to pay tax on the first £5,000 (£2,000 from 6 April 2018) of your dividend income, no matter what non-dividend income you have. The allowance is available to anyone who has dividend income. You’ll pay tax on any dividends you receive over the dividend allowance at the following rates:

  • 7.5% on dividend income within the basic rate band
  • 32.5% on dividend income within the higher rate band
  • 38.1% on dividend income within the additional rate band

Dividends received on shares held in an Individual Savings Account (ISA), will continue to be exempt from tax.

The Virgin Bond and Gilt Fund pays interest, not dividends, and this is taxed differently.

Is the interest earned from my investment subject to tax?

Interest from the Virgin Bond & Gilt Fund earned in your Virgin Stocks and Shares ISA or your Cash ISA is already exempt

The Virgin Bond & Gilt Fund is the only one of our funds that earns interest, the others earn dividends.

As of 6 April 2016, if you’re a basic rate taxpayer you can earn up to £1,000 in savings interest income tax-free. Higher rate taxpayers can earn up to £500, additional rate taxpayers £0. This is called the Personal Savings Allowance.

Any interest you earn from bank accounts, savings accounts, credit union accounts, building societies, corporate bonds, government bonds and gilts (and funds that invest in them) is covered.

If you’re a basic rate taxpayer and have savings income or interest of more than £1,000 (£500 for higher rate taxpayers), you’ll have to pay some tax on this. HMRC will normally collect the tax by changing your tax code.

Interest from the Virgin Bond & Gilt Fund earned in your Virgin Stocks and Shares ISA or your Cash ISA is already exempt from tax and doesn't count towards your Personal Savings Allowance, so you can earn it tax-free and still have your full £1,000 (or £500) Personal Savings Allowance.

What is an ISA Additional Permitted Subscription allowance?

As of 3 December 2014, if you are married or in a civil partnership and your spouse or civil partner dies, you are entitled to an extra ISA allowance equal to the value of the ISA(s) held by your partner, even if you don’t inherit the money or assets in the ISA. This ISA allowance is called the Additional Permitted Subscription (APS) allowance and is in addition to your annual ISA allowance.

Virgin Money accepts ISA APS allowances, as long as you live in the UK and fulfil the eligibility criteria. For more information about the Additional Permitted Subscription allowance please read the attached leafletPDF opens in a new window. 

If you would like to know more or apply for a Virgin Money APS ISA please call us on 03456 10 20 20*

*Calls may be recorded and monitored. We're here 8am to 9pm, Monday to Friday and 9am to 6pm Saturday.