The significant benefits of investing in a flexible ISA from Aviva

Aviva’s ISA Portfolio is totally flexible, meaning your clients can withdraw money during the tax year if necessary and then top their funds back up to the full £20,000 allowance when they’re able to do so. Moreover, you can help your clients select from thousands of funds to build a portfolio that meets most investment goals or levels of risk appetite.

The ISA Portfolio on the Aviva Platform lets your clients invest tax-efficiently in a wide range of collective investments and equities from all key investment sectors.

Crucially, it’s a flexible ISA, allowing your client to withdraw money and replace it within the same tax year without affecting their annual ISA allowance of £20,000 per individual. That’s a huge advantage over non-flexible ISAs. If your clients withdraw money from those, they won't be able to add any more in that particular tax year.

For example, a client with £20,000 in a flexible ISA can withdraw £10,000 if needed and then replace that £10,000 later in the financial year. But if they withdraw £10,000 from a non-flexible ISA, they can’t add to the remaining pot of £10,000, so they will permanently lose out on the long-term capital growth and income potential generated by an ISA invested in shares and/or fixed-income products.

Over the long term, the impact of these forgone potential gains can be significant. As an example, if an investor leaves £10,000 in an ISA returning 5% a year, that money will increase to £16,288.95 after 10 years and £26,532.98 after 20 years1. Now imagine the client doesn’t just withdraw money in one year but does so during most years, and the impact on their wealth over time is clearly dramatic.

A world of choice – how you and your clients benefit from new-found flexibility

Your clients can choose from thousands of funds, unit trusts, investment trusts, insured funds, exchange-traded funds, and stocks and shares catering for most investment goals and attitudes to risk when they opt for the Aviva ISA Portfolio.

Moreover, it’s easy for you, as an adviser, to switch funds within the ISA Portfolio on your clients’ behalf if, for example, their investment goals change, or in reaction to market events.

All of this can be done online. Your clients can check their ISA Portfolio’s performance, see its current value, and take a look at transaction reports online with myAviva.

All gains will be free from personal liability to income tax and capital gains. In addition, it’s simple to transfer ISAs from current and previous tax years, combining them in one easy-to-manage portfolio with all the benefits of a flexible ISA outlined above. So, if your clients currently have non-flexible ISAs, they can quickly move them into our flexible wrapper, with all the advantages that brings.

The ISA allowance reporting functionality lets you calculate and display unused ISA allowances for clients. We can handle bulk ISA business in a quick and easy way that’s both cost-effective for you and affordable for your clients. The platform’s automatic re-registration functionality enables fast, efficient transfers without taking your client’s money out of the market. And finally, the 0.25% platform charge for the Aviva ISA Portfolio helps you serve your clients affordably.

Who is it suitable for?

The Aviva ISA Portfolio best meets the needs of clients who:

·         Can invest £50 a month or a lump sum of at least £1,000.

·         Are comfortable that their investment may rise and fall in value over time.

·         Understand there is a risk that they may get back less than they invested.

·         Want to transfer ISAs held with other providers into one place for easier and more efficient management.

How flexible is the Aviva ISA Portfolio?

Your clients can:

·         Invest single and regular payments.

·         Hold their payments in cash while they consider their investment decision.

·         Make withdrawals when they want.

·         Replace withdrawn amounts in the same tax year without affecting their annual ISA allowance.

·         Stop paying into their account at any time as long as they leave a minimum balance.

·         Withdraw all their money at any time as long as there are no relevant trading suspensions in place.

·         Change their investment choices at any time.

To enquire or learn more about the Aviva ISA Portfolio, please visit our ISA Portfolio page.


1-     Investor Gov, Compound Interest Calculator