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Investing in Stocks and Shares ISAs

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  • Admin
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  • Investments
  • Posted date:
  • 05-08-2019
Investing in Stocks and Shares ISAs

A Cash ISA is just a saving account that you don't need to pay any tax with, whereas with a stocks and shares ISA, you are investing your money.  In the UK, everyone over 18 years of age will have £20,000 as an annual allowance for the tax year 2019-20 ending on 5th April 2020, from ISA. If you want to earn this allowance, then you can invest all of your money in stocks and shares ISA, or divide it between some other form of ISA.

Stocks and shares ISA

An excellent way of investing for your future stocks and shares is making use of an ISA. They generously provide you with considerable advantages in tax, which you cannot get elsewhere. You can invest in various stock markets such as investment trusts, unit trusts, exchange-traded funds, and individual company shares through this tax-free investment scheme. Your returns will be free from capital gains tax and income tax.

If you have completed your self-assessment tax return, then you don't need to declare your investments in an ISA. You can save thousands of pounds of tax on your investment returns during several years through the allowance earned from ISA. They are devoted private investors who have increased their investments by enhancing their contributions every year.The taxman cannot touch your money during your lifetime if ISA covers the location. You can also pass your pot of tax-free investment in ISA to your civil partner or spouse after your death. However, then it can be taxed under the law of inheritance tax. 

User-friendly tax-free wrapper

ISAs were launched initially by the government in 1999. The tax-free wrapper was a cover in which you can include various types of investments. However, the government never considered this as an investment platform. 

The annual allowance of £20,000 from ISA by the end of the tax-year 2019 -20 will be very generous. You can use stocks & shares ISA to pre-order or trade funds and stocks any time whenever you want as it is very flexible. You can either invest a single lump sum amount from £250 onwards or £25 as a regular monthly investment depending upon the online share dealing site you are using. 

You can withdraw your money anytime from your ISA, but there is some restriction. You cannot deposit money and take it back any time from ISA like your bank account.

Paul Dodd Asset Management Limited is committed to providing independent financial management throughout Leeds and North Yorkshire. If you need to speak to our investment advice specialist today, please get in touch to discuss the ways that we can help you.