Equity release is a topic which can stimulate particular interest among the older generation as [...]
Stock and Shares ISACreated by Verity in Saving for you
Saving for the future is something we all do to build financial security for later in life. As the cost of living rises and every penny matters, it makes sense to look for a savings option that offers more than just a basic return of growth. With such savings, there is a worry that taxes could eat into a significant chunk of your profits.
A Stocks and Shares ISA is one way to ensure your savings grow in a more tax-efficient way. As long as you keep within the Government’s annual maximum ISA limit, the money you invest and subsequent growth will not be touched by capital gains tax or income tax. Since 6 April 2012, the annual limit set by the Government to invest in a stock and shares ISA is £11,280 – stay within these parameters and watch your ISA grow without worrying about tax.
A stocks and shares ISA places your money into a wide range of carefully managed mix of assets and investments such as stocks and shares, property, gilts, cash, government and corporate bonds, and/or even and unit and investment trusts. The values of these funds will fluctuate up and down over time, which means it is wise to view any ISA as a medium to long term investment, as the goal of any fund is to provide slow and steady growth over time. And remember, since you don’t have to declare your stocks and shares ISA to HM Revenues and Customs, you can rest assured any profit gained won’t be touched by the Government.
As long as you live in the UK, are ordinarily resident here for tax purposes and are over 18, you can invest in a stock and shares ISA. Once an account has been opened, you can arrange regular monthly payments and have the option to invest lump sums of cash into the ISA when your financial circumstances allow – as long as you don’t exceed your annual allowance.
Some plans allow flexibility with monthly premiums, offering you the opportunity to increase your payments from the minimum of £30 any time you want. Furthermore, you can also lower your monthly premiums to a minimum of £50 when required. In addition, you can make cash withdrawals any time you choose. It must be noted, however, that with any savings plans, deductions in premiums and withdrawals will ultimately impact your potential gains in the long run.
Open a Stocks and Shares ISA today and start saving in the most tax-efficient way as possible.