Sheltering up to £11,520 tax-efficiently means taking action NOW

Time is running out if you want to make the most of this year’s Individual Savings Account (ISA) allowance, so you’ll need to get your skates on.

 

ISAs are a tax-efficient way of investing, helping you minimise the tax you pay on your savings and investments. No matter how little you can save, putting away a small amount regularly each month in a tax-efficient ISA can make a big difference in the long term.

An ISA is a tax-efficient wrapper into which you place your investments to protect them from the taxman. Any investment growth, no matter how much, is then free from income and capital gains tax (a 10% tax credit is still payable on UK share dividends and cannot be reclaimed).

Stocks & Shares ISA Allowance 2013/14

You can invest up to £11,520 in a Stocks & Shares ISA in the current tax year (2013/14)

Invest in funds that in turn invest in shares quoted on stock markets around the world

More risky than a Cash ISA, but with the potential for greater returns

Cash and Stocks& Shares combination

Alternatively you can invest up to £5,760 in a Cash ISA and the balance in a Stocks & Shares ISA, or just cash if you prefer.

Junior ISA limit

You can invest up to £3,720 in a Junior ISA

You can invest in stocks and shares, cash or a combination of both

You cannot invest in a Junior ISA if the child was eligible for a Child Trust Fund Account

The value of investments can go down as well as up and you may not get back the amount invested. The value of tax savings in an ISA depends on individual circumstances. Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from taxation, are subject to change.