If so, a Stocks and Shares ISA could be right for you.
ISAs can be a smarter way to save and invest. Research from Santander shows that almost two thirds of the population are unclear about the amount that can be invested into an ISA^.
A Stocks and Shares ISA is a popular way to invest your money. Simply because any returns on your savings or investments are free from Capital Gains or income tax.
Your ISA allowance
At the start of the new tax year comes your new ISA allowance. With this, you’re able to invest up to £20,000 into a Stocks and Shares ISA, or a Cash ISA.
Stocks and Shares ISAs have recently seen an increase in popularity. HMRC has reported that almost 250,000 more Stocks and Shares ISAs were opened over 2017/18*.
This comes amidst a decade of low interest rates on savings accounts, which are making it difficult for people to achieve long-term real returns through cash ISAs. Therefore, if you’re prepared to invest your money for five years or more, a Stocks and Shares ISA could prove beneficial towards your future saving.
It’s important to know that with a Stocks and Shares ISA the potential returns can be higher than its cash equivalent. But you must understand that your capital is at risk and the value can go down as well as up, meaning you could get back less than you originally invested.
How Skipton can help
Tax can significantly eat into your savings and investments over time. So, when there’s an opportunity to reduce the amount you pay, it’s wise to grab it by both hands.
If you’ve got any questions about investing in an ISA, we are on hand to give you plenty of help and support. We can help you to plan in advance accordingly, and advise how you could make use of your ISA allowance by investing in a way that suits your circumstances.
The tax treatment of your investments depends on your individual circumstances and prevailing legislation, both of which may change in the future.
^Moneyfacts – ‘Savers still confused by ISA’ (2019)
* HMRC individual Savings Account Statistics August (2018)