In times like these, every penny counts. Interest rates are at a historic low and rising inflation can erode our buying power. One way to mitigate these effects is to shield savings from tax by investing though an Individual Savings Account (ISA).
A flexible 'Wrapper'
An ISA is not itself an investment - its a flexible 'wrapper' under which a wide range of investments can be made, and the proceeds free of capital gains or income tax. You can choose from two types of ISA - Stocks & Shares ISA's (shares, bonds or funds based on shares or bonds) and Cash ISA's. Stocks & Shares ISA's are also known as Equity ISA's.
Cash ISA's may be suitable for short term savings, so that you can get at your money easily.
Stocks & Shares ISA's may be appropriate if you can afford to leave your money untouched for longer than 5 years.
There is a limit to the number of ISA accounts you can subscribe to each tax year. In different years you can choose to invest with different ISA managers. It is possible to transfer your ISA from one provider to another allowing you to pool your ISA investments together into one lump sum.
ISA allowances are reviewed annually by the government and are currently increasing with inflation. Please contact us for more details.