MARKET INSIGHTS: MAKE THE MOST OF YOUR ISA ALLOWANCE
Typical reasons you might invest in an ISA:
- Accessibility: You can access your funds at any time, making it a practical way to build up capital. Bear in mind that the larger the gains over time, the more valuable the tax free benefit.
- Mortgage Repayment: An ISA can be a smart way to accumulate a tax-free fund that can be used towards repaying a mortgage.
- Long-term Savings: Many clients use ISAs to build a tax-free fund for their retirement provision.
- Private Education: Couples often use ISAs as a means of saving for their children’s private education.
Benefits of a stocks and shares ISA:
- Tax-free Growth: Your investments purchase units in funds covering various geographical regions, sectors, and assets. Ideally, you will benefit from both capital and dividend growth. All income and capital gains from investments within the ISA are currently free from tax.
- Flexibility: An ISA can be a smart way to accumulate a tax-free fund that can be used towards repaying a mortgage.
- Professional Management: Many clients use ISAs to build a tax-free fund for their retirement provision.
Benefits of a stocks and shares ISA:
- No Income Tax: There is no tax payable on income generated from your ISA.
- No Capital Gains Tax: Any capital gains arising from your investments are not subject to tax.
- No Reporting to HMRC: You are not required to inform HMRC about any income or capital gains earned from your ISAs.
ISAs and JISAs are savings options that allow your investments to grow free from income tax and capital gains tax, as per current UK tax legislation. Where possible, I strongly recommend making the most of your annual ISA allowance (£20,000 for the 2024/25 tax year) to grow your savings tax free. Although you have an annual amount you can contribute -any growth is compounded tax free year after year!
If you’d like tailored advice on ISAs and JISA options and how they can fit into your financial plan, contact me for personalised advice. Please note there’s limited time to arrange ISAs before 5th April for this tax year..
If you’d like tailored advice on ISAs and JISA options and how they can fit into your financial plan, contact me for personalised advice. Please note there’s limited time to arrange ISAs before 5th April for this tax year..
Risks : Buying Investments can involve risk. The value of your Investments and the income from them can go down as well as up and is not guaranteed at anytime. You may not get back the full amount you invested. Information on past performance is not a reliable indicator for future performance. This information is intended for educational purposes and should not be considered a recommendation to buy or sell a particular security. The views expressed here are subject to change without notice and we can’t accept any liability for any loss arising directly or indirectly from any use of it.
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