As part of its policy of encouraging savings, the government introduced Individual Savings Accounts (ISA’s), which enable investors to receive their interest or capital growth returns completely free of tax. Such concessions always have limits and these were set at £20,000 as of April 2017.
ISA’s have the flexibility to use the allowance however you wish:
- You can invest wholly in stocks and shares, or completely in cash, or any combination of the two without the requirement of a fixed amount in either.
- An ISA can hold a wide investment range and apart from Stocks & Shares and cash.
- You can contribute to one cash ISA and one Stock & Shares ISA (up to the overall maximum) each tax year, and may transfer between each of them an unlimited number of times within that tax year.
- ISA’s can now be transferred between spouses on death.
Posted in: Investments
