UK ISA

The BP ISA plans are only open to individuals resident for tax purposes in the UK (including Crown employees serving overseas and their spouses/civil partners) who are aged 18 or over. 

Individual Savings Accounts (ISA)

An ISA is a tax efficient way of saving or investing as all income and capital gains arising within an ISA are exempt from any personal liability to UK Income Tax and Capital Gains Tax.

There are four different types of ISA:

  • cash ISAs;
  • stocks and shares ISAs;
  • innovative Finance ISAs; and
  • lifetime ISAs.

A payment by you into an ISA in any tax year is called a subscription. You can only subscribe to one of each type of ISA per tax year.

The BP ISA is a stocks and shares ISA.

There are annual limits on the amount an individual may invest. You cannot subscribe to more than one of each type of ISA per tax year.

Limits for ISA investment

Because of their tax advantages ISAs are subject to annual subscription limits. The overall ISA subscription limit is £20,000 for the 2017/18 tax year.

You can subscribe to any combination of permitted ISAs in the same tax year, subject to the subscription limits and eligibility requirements for each type of ISA, but you cannot exceed the overall maximum ISA allowance of £20,000 for the 2017/18 tax year.

BP's corporate sponsored ISA

From 6 April 1999 BP introduced a Corporate Sponsored ISA in which investments are held in the form of BP shares; The BP ISA is a stocks and shares ISA. The Corporate Sponsored ISA Manager is HSBC Trust Company (UK) Limited. Investment into the BP ISA is covered by the Financial Services Compensation Scheme. For further information please see the pages detailing contacts and downloads on this website. 

HSBC Trust Company (UK) Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our firm reference number is 119297. You can check this on the Financial Services Register by visiting the Financial Conduct Authority website www.fca.org.uk or by contacting the Financial Conduct Authority on 0800 111 6768.

How to invest

You may open an ISA by: 
  • transferring shares from a qualifying BP employee share scheme;
  • using BP shares you already own;
  • investing cash (lump sum);
  • using a combination of cash and shares;
  • transferring another stocks and shares ISA; or
  • transferring a cash ISA from HSBC or another ISA manager.
Applications to open a BP ISA in a particular tax year, which involve the sale of an existing shareholding must be received by the ISA manager fully completed, and no later than 28 days before the end of the tax year. All other applications must be received no later than 14 days before the end of the tax year. 

Dividends within the BP ISA

The ISA Manager will automatically reinvest cash dividends (less the ISA Manager's Fee) within the ISA, unless you choose to have them paid to you as income. All dividends will be paid in sterling. If you wish to receive the income you should either indicate this on the Application Form at the time of opening or transferring your ISA or by writing to the ISA Manager after the ISA has been opened or transferred. Receiving dividends as income does not count as a withdrawal from the ISA.

When BP shares are sold

If BP shares are sold at a profit from within the BP ISA (when you make a total or partial withdrawal from the BP ISA) there will be no UK CGT liability, nor is there a need to declare any income or gains on your tax return. However, if any shares are sold at a loss within an ISA the loss cannot be used to offset against chargeable gains made on assets and/or instruments held outside of an ISA. 

When existing BP shares are sold to provide cash to subscribe to the BP ISA, you may be liable for CGT. This may occur where the gain on that sale, together with any other chargeable gains (less any allowable losses) you have made in the same tax year, exceeds the annual exemption limit. It remains your obligation to inform HM Revenue and Customs of any gain on the sale of these BP shares.

The ISA Manager is not able to give advice on the application of this tax in individual circumstances. 

2016/2017 Literature

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