Smart Women Invest
Overview
The first step on your investment journey is to decide how you want to invest. MoneyShe portfolios can be held directly in a General Investment Account (GIA) or via a tax efficient wrapper such as an ISA, JISA, or SIPP. Scroll down to learn more and find the one that best fits your financial goals.
Self-Investest Personal Pension (SIPP)
What is a SIPP?
A Self-invested Personal Pension (SIPP) is a type of pension introduced for people who want an alternative to workplace pensions. They offer tax-benefits with the UK Government giving a 20% basic tax relief with the additional benefit of Inheritance Tax not applying to SIPPs.
For the 2023-2024 tax year, the annual allowance for SIPPs is £60,000. So, whichever is lower between your annual income and £60,000 is the maximum amount you can contribute into your SIPP; but your employer can also contribute into your SIPP.
You can also ‘carry forward’ unused allowances from the previous three years. To understand how this works and the calculations used, please read our SIPP Key Features Document here.
Setting up a SIPP account
You can either set up a completely new SIPP with SCM Direct or cash in an exisitng SIPP and transfers the money into our SCM SIPP tax wrapper.
There is an online application process to create the SCM SIPP wrapper where you’re able to select the type of portfolio you would like to invest in along with your personal and financial details.
See here for Tax reclaim information.
Transfer a SIPP
MoneyShe/SCM Direct only takes cash transfers into our SIPP tax wrapper.
Once you have successfully opened an SCM Direct account, the account information will be sent to your current SIPP provider for transfer into your new SCM SIPP account.
Once funds have been transferred, they will be invested, normally, the first business day of the following week.
Cost of a SIPP
There is no set up or initial fees.
The maximum annual charge is £50 +VAT.
The ongoing annual fee is 0.1% +VAT; subject to a minimum annual charge of £15 +VAT.
There are no additional charges for transfers in and the fee for transfers out will not exceed the previous year’s fee.
An additional annual fee of £125 +VAT applies to any SIPP that is in drawdown.
For investment outside of the SCM Direct Portfolio held within a SIPP wrapper – such as commercial property, divorce & death – any request or requirement would be quoted to you directly by our SIPP administrator, before any work is carried out.
SIPP Partners
When you choose to open a SIPP with SCM Direct you will be entering into a tri-party arrangement, with your money held on the Hubwise Securities Ltd platform as a “Hubwise SIPP”, and SS&C Hubwise Ltd acting as the authorised SIPP administrator. SCM Direct are the discretionary investment manager of your money held within the SIPP tax efficient wrapper.
By choosing to open a SIPP with SCM, it’s important that you understand you are agreeing to be bound by the Terms & Conditions of SS&C Hubwise Securities Ltd.
Once your SIPP application is successful and your account is open and funded, you can view your SIPP 24/7 by logging into your account via the SCM website.
Hubwise Securities Limited
Hubwise Securities Ltd, is the SCM custodian for client money, and is responsible for holding all assets (including ETFs) on your behalf.
Hubwise Securities Ltd is a UK registered company (Number 06071374) and is authorised and regulated by the Financial Conduct Authority (Number 6071374). It has permission to hold client money, safeguard and administer (provide custody for) assets for professional and retail customers.
Hubwise Securities Ltd have insurance in place for Professional Indemnity and Crime as well as an agreement between Hubwise Securities Ltd and Hubwise Nominees Ltd to further strengthen asset security. They have no trading-book exposure as they only act as an agent to place aggregated deals with Fund Managers for collective investments and market counter-parties to place deals in securities.
What do I do next?
Now you have selected your account (SIPP), the next step in the process is to select the portfolio you wish to be invested and use our portal to create your account!
Please click here to view our portfolios to see which one is right for you.
Stocks and Shares Individual Savings Account (ISA)
What is an ISA?
An Individual Savings Account (ISA) is a tax wrapper that allows you to save, either in cash or stocks and shares, without paying any tax on the money in the wrapper. This includes any returns/growth is tax-free. At MoneyShe/SCM Direct, we only offer a Stocks & Shares ISAs, not Cash ISAs.
The Government tends to review and often increases the annual ISA allowance each year. For the 2024/2025 tax year, the allowance is £20,000.
A Stocks and Shares ISA could be for you if:
- You would like tax-free savings, including not paying tax on any capital gains and income (tax from dividend income is deducted at source and cannot be reclaimed)
- You are looking to invest for at least five years
- You haven’t used up your full ISA allowance for the current tax year
- You are over the age of 18, living in the UK with a UK bank account or building society
It is worth noting that the long-term annualised real return (i.e. the return after inflation) from investing in a mix of bonds, equities, and cash has shown it produces higher returns than cash savings accounts or Cash ISAs.
Note: Higher returns tends to be accompanied by higher risk.
What are the tax benefits of an ISA?
You pay no tax on any of the returns/growth you receive from your investments held in an ISA. This includes dividends, interest and bonuses, but an ISA investor cannot claim the tax credit, which is attached to a dividend.
You pay no tax on capital gains arising on your ISA investments (losses on ISA investments cannot be used for Capital Gains Tax purposes against capital gains outside your ISA).
You do not have to declare income and capital gains from ISA savings and investments or even tell your tax office that you have an ISA.
Opening an ISA
It takes only 10 minutes to open an ISA account.
MoneyShe’s minimum investment is £10,000 and you must be:
- Aged 18 and over
- Living in the UK with a UK bank or building society account
- A UK resident for tax purposes.
If you have any questions about a new or existing ISA, please do not hesitate to contact us at: enquiries@moneyshe.com.
Transferring an ISA
If you have an existing ISA with another provider, you can transfer your ISA to an MoneyShe stocks and shares ISA whenever you wish. We accept partial transfers of an ISA (subject to our £10,000 minimum investment level).
You cannot transfer your ISA by closing it and opening a new stock and shares ISA with us. Your existing ISA manager cannot stop you transferring, but they may make you pay an exit charge, or make a charge for selling your existing ISA investments; as MoneyShe only accepts cash transfers (you may want to consider this before transferring your ISA).
The ISA rules allow you to transfer between stocks and shares ISA and cash ISAs as you wish. However, if you want to transfer the money you have put into your ISA in the current tax year, you must transfer all of it.
You can also transfer all or some of the money you have been putting into your ISA in previous years if you wish.
To open or transfer a ISA please click here.
Junior Individual Savings Account (JISA)
What is a JISA?
A Junior Individual Savings Account (JISA) is a long-term tax-free savings account for children. Each child, from birth to 18 years old, living in the UK, can have their own JISA account. The annual allowance for the 2024/25 tax year is £9,000 per child.
The JISA tax-free wrapper allows you to save for your child’s future, in stocks and shares, without paying any tax on the money invested within the wrapper; including the returns/growth received.
Only parents or guardians with parental responsibility can open a JISA for each child. The parent or guardian, the ‘registered contact’, will be the only person who can manage or change the account and report changes of circumstances. Children over 16 can become the ‘registered contact’.
JISA accounts automatically turn into adult ISAs when the child turns 18 years old, with the higher annual adult allowance of £20,000 applying.
How do I open a JISA?
At MoneyShe, we only offer Stocks & Shares JISAs. Anyone can pay into a child’s JISA, up to a maximum of £9,000 in the 2022/2023 tax year. Our MoneyShe minimum initial amount to open a JISA is £9,000 for a child under 18 years old and living in the UK.
Please note: Before filling out the JISA application form, you must create an account.
To open or transfer a JISA please click here.
General Investment Account (GIA)
What is a GIA?
A General Investment Account (GIA) is a simple and flexible way to invest your money. There are no limitations to the amount you can invest or contribute.
A GIA can be opened by anyone over the age of 18, living in the UK, with a UK bank or building society account.
All MoneyShe/SCM Direct Portfolios are available for a GIA.
Setting up a GIA account
Our cutting edge technology means you can open an account online in just 10 minutes. Simply fill out the online application and you’re on your way to financially securing your future.
The initial minimum investment level for a GIA account invested in one of our GBP Portfolios is £10,000.
Once an account is opened, it is easy to set up an automatic monthly contribution, with a minimum of £200 per month, or add to your account ad hoc.
If you feel unsure about any aspect of a GIA, please email us at enquiries@moneyshe.com
What do I do next?
Now that you have selected the account you wish to use, the next step is to choose the portfolio you wish to be invested in.