7 reasons to have an ISA

Article

15 January, 2010

1. ISAs are tax-efficient
  • There is no income tax to pay on the interest you earn on a Cash ISA
  • Basic rate taxpayers get a fifth more in interest each year than from the same account outside a tax-efficient ISA.
  • If you put your money into stocks and shares (see point 3), there is no extra tax to pay on dividends from equities.
  • Also when you finally sell your shares , there's no capital gains to pay either.
2. The Limits are rising
  • There is a limit to how much you put into an ISA every tax year.
  • But there is good news. From 6 April 2010 you'll be able to invest a total of £10200 (up from £7200)
  • Up to half of this amount is available as a Cash ISA allowance.
  • If you're 50 before 5th April 2010 the higher £10200 limit already applies.
3. ISAs mean choice
  • Up to half the annual allowance can be put into a safe savings account or Cash ISA.
  • The other half - or even the lot lot if you wish - can be invested into a stocks and shares ISA
  • Unit Trusts, individual equities and some bonds can be placed in this type of ISA
  • You can choose between investing monthly or investing a lump sum.
4. ISA's can be as secure as you like
  • Once you've decided how to split your annual allowance there is a vast selection of providers and funds to choose from.
  • You can even transfer your ISA to another provider if you wish.
  • The ISA you choose should match your Investment attitude to risk with Cash ISAs being the most secure.
5. It's a use it or lose it tax deal
  • You cannot carry over your annual allowance past the end of each tax year.
  • 5th April 2010 is this year's deadline.
  • SO ACT NOW!
6. It's just common sense
  • So if you are able to save what is the point of paying tax on your savings and investments?
  • Every UK resident over 18 is eligible
  • Cash ISAs are also available for 16 and 17 year olds provided the account is in their own name.
7. We can help you

If all this sounds great, but you have more questions or just want to talk it over then contact one of the Financial Services team at our Preston office, Ribchester House, Lancaster Road, Preston, PR1 2QL, call 01772 220022, or contact Peter Toner by email.

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