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No initial advice charge when you apply online
No initial advice charge when you apply online

Unit Trust ISA

Tax-friendly investment, at a risk level right for you

Before you invest: Read our guide

Why choose the Unit Trust ISA?

A simple, transparent stocks and shares ISA from Wesleyan Unit Trust Managers (WUTM), the Unit Trust ISA lets you invest in a range of risk-rated funds, each expertly managed on your behalf.

  • Save up to £20,000 in the 2022/2023 tax year
  • Pay no income tax or capital gains tax on your investment returns
  • Take your pick from six funds to suit your own appetite for risk
  • Leave your investment in the hands of our award-winning Fund Managers
  • View your portfolio online at any time

Dealing costs and ongoing charges will apply. If you take advice from a Specialist Financial Adviser from Wesleyan Financial Services, an initial advice charge will also apply.

Bear in mind all investments can go down as well as up, and you may get back less than you put in.

How it works

Our Unit Trust ISA allows you to invest your tax-free ISA allowance (£20,000 for 2022/2023) in a range of funds managed by WUTM’s award-winning team.

When you invest in our Unit Trust funds, you’re effectively pooling your money with other investors - giving you the collective buying power to invest in things that might be hard to access on your own.

All our funds are invested differently to suit a range of different risk appetites, but typically, you’ll be putting your money into stocks, shares, bonds and other securities.

If those underlying assets perform well, your fund units gain value and your pot grows. Best of all, you won’t pay tax on any potential gains you make.

How to get started

You can open your account with a one-off payment (minimum £1,000). Once you have a plan in place you can choose to make regular payments.

Before you invest, please read our guide to Investing in Unit Trusts. (PDF - 436KB)

You choose, we manage

When you open your Unit Trust ISA, it’s up to you where your money goes – with up to six managed funds to choose from. 

You can simply select the one that best suits your attitude to risk and reward, or you can spread your money across as many different funds as you like. If you change your mind, you’re also able to switch funds at any time.

If you’re not sure what level of risk is right for you, you can book an appointment with a Specialist Financial Adviser from Wesleyan Financial Services. A 3% advice charge will apply for advised applications.

In good hands

You don’t need to be an experienced investor to open a Unit Trust ISA. All our funds are managed on your behalf – and we like to think you’re in good hands.

In 2019, Wesleyan Unit Trust Managers was rated “strong” (the highest possible rating) in an independent report of the world’s largest asset management companies by Plimsoll Publishing.

Looking longer term

Like most investments, the Unit Trust ISA is best suited to those who are able to leave money invested for a minimum of five years. That way, your investment has more time to grow and to ride out any dips in the market.

That said, you can take money out of your Unit Trust ISA at any time, with no exit fees at all. We just ask that you always leave at least £500 in the account (unless you’re closing your account, of course).

Flexible payments

You can open a Unit Trust ISA with a lump sum of just £1,000. You can then set up regular payments of £50 per month.

If you want to increase these payments or change the frequency of your investments later down the line, no problem – we don’t charge you for making changes. The minimum increase you can make to your Direct Debit is £10 per fund.

Be aware too that if you’re planning to invest in multiple funds, you’ll need to increase your subscription by £50 for every additional fund.

Returns re-invested

There are two ways Unit Trust funds can generate returns – capital growth (an increase in the unit value) or income, such as dividends from shares.

When your investment does generate a dividend, you can choose to have it paid out, or re-invested in your account.

Reinvesting can significantly boost your investment returns over time, through a process known as ‘compounding’.

Got a question about the Unit Trust ISA?

Call us on 0330 123 3813. We're open Monday to Friday, 9am to 5pm.

Want to transfer in from an existing ISA?

You’ll need to book an appointment with a Specialist Financial Adviser from Wesleyan Financial Services (initial advice charge applies).

Frequently asked questions

  • What is a Unit Trust ISA?

    A Unit Trust ISA is a type of stocks and shares ISA, invested in our Unit Trust funds. Unit Trust funds are split into a large number of equal units, and those units are effectively what you’re buying when you pay into your ISA.

    The value of the units can then rise or fall depending on the performance of the fund’s underlying assets.

  • Am I eligible for a Unit Trust ISA?

    You can take out a Unit Trust ISA if you are a UK resident for tax purposes and aged 18 or over, and have not already paid in to a different stocks and shares ISA in the current tax year.

    With no upper age limit on applications, it’s an ISA for all generations of investor. 

  • How much can I pay into a Unit Trust ISA?

    Each tax year (6th April to 5th April), there’s a certain amount of money you’re allowed to save into ISAs. For the tax year 2022/2023, that allowance is £20,000. 

    Just be aware that tax rules for ISAs can and do change, so the allowance may vary from year to year. Remember too that if you don’t use your full allowance during the tax year, you won’t be able to carry any over.

  • How do I save into a Unit Trust ISA?

    You can open your account with a one-off payment (minimum £1,000). Once you have a plan in place, you can set up a monthly subscription (minimum £50 per month). You can top up your account at any time, up to the maximum ISA allowance of £20,000 for the 2022/23 tax year.

    For ad-hoc top ups, you’ll need to put in at least £500, or £250 per fund if you’re investing in multiple funds.

    If you want to increase a monthly Direct Debit payment, you’ll need to put it up by at least £10.

  • Can I transfer my existing ISA to the Unit Trust ISA?

    Yes, you can transfer an ISA to us from another provider, as long as you’re transferring at least £500.

    At the moment, we can only accept transfers that have been advised by a Specialist Financial Adviser from Wesleyan Financial Services. An initial advice charge of 3% will therefore apply to the sum you transfer.

  • Are additional permitted subscriptions (APS) available on this ISA?

    Additional permitted subscriptions (APS) can give an increased ISA allowance to the surviving spouse or civil partner of a deceased investor.

    The Unit Trust ISA doesn’t have an APS facility at present, but Wesleyan Assurance Society’s With Profits ISA does, so it may be worth a look if this issue affects you.

Important Information:

Things to know before you apply

When you open your investment account online, you will not receive any investment advice or personal recommendation from us. Please therefore make sure you read the important information and key documents below, and any documents presented to you during your application.

Charges

When you invest in a Unit Trust ISA, there are some management and dealing costs (circa 1%) to pay. These costs are shown as Ongoing Charge Figures (OCFs). The latest OCFs for each fund can be found in the Key Investor Information Documents in our fund prices centre.

If you are opted in for the Ongoing Advice Service (OAS) provided by Wesleyan Financial Services, please note an additional 0.5% will be added to the OCF charge.

ISA and tax rules summary

The WUTM Unit Trust ISA is a stocks and shares ISA. You can hold multiple ISAs at the same time, but please note you can only contribute to one stocks and shares ISA in a tax year. In total, you can save up to £20,000 in ISAs in the 2022/2023 tax year. 

To apply for a Unit Trust ISA, you must be a UK resident for tax purposes.

You'll pay no personal income tax or capital gains tax on your investment returns from the Unit Trust ISA. This is based on current understanding of legislation and tax treatment, which can change in the future.

Key documents

Before you apply to open a Unit Trust ISA, please read the following documents:

Please also read the latest Key Investor Information Document (KIIDs) for any fund(s) you’re considering investing in. These can be found in our fund prices centre.

If you are already investing with us and have opted into the Ongoing Advice Service (OAS) provided by Wesleyan Financial Services, the appropriate 'B' unit class KIIDs are available through the WUTM Investor Portal.