When you begin the onboarding process for Mutual Funds, you'll be prompted to choose between opening an ISA or a GIA account with Plum. We strongly advise for a careful choice before proceeding with your investment registration, as you won’t be able to change the type of your account once the onboarding is complete.
Individual Savings Account (ISA)
Plum offers a Stock and Shares ISA option for Mutual Funds, providing a tax-efficient investment platform where you don't pay income or capital gains tax on earnings within the ISA. This account allows investment in a diverse range of shares, funds, investment trusts, and bonds.
However, there's an annual allowance of £20,000 for ISA investments per tax year. This means if you have multiple ISA accounts (e.g., Stocks & Shares, Cash), the total investment across all accounts cannot exceed £20,000.
General Investment Account (GIA)
GIA accounts are great if you've maxed out your ISA limit of £20,000 and still want to invest more. They're also handy if you already have a Stocks & Shares ISA with another provider, as you can't have two of the same type. Unlike ISA, the GIA accounts don't come with tax benefits, so you'll need to pay income tax and capital gains tax based on your personal tax situation.
Change between ISA and GIA
Once you select an ISA or a GIA account during the onboarding process, you won’t be able to change the type of your account. Our system is not designed for account-type switches, and therefore can only accommodate one account type per user; once an account type is selected, it cannot be altered.
It's crucial to understand that ISA and GIA accounts have distinct tax implications. If you're uncertain about how these regulations affect your financial situation, we recommend consulting a qualified financial adviser before you proceed, as we cannot provide further advice on this matter.