7 Reasons to set up a Stocks & Shares ISA.
1. Tax-free growth.
If you’re investing in bonds, a Stocks & Shares ISA will shelter any interest that you gain from the taxman.
2. Tax-free income.
Funds held within a Stocks & Shares ISA are exempt from Capital Gains Tax – this is a tax on profits which you only have to pay when you sell your investments.
3. Tax-free returns.
It’s hard to imagine that having a lot of cash can be a bad thing, but for a long-term saving strategy it can be a bigger risk than you think.
4. Contribute up to £20,000 each tax year.
For the current 2022/23 tax year, the maximum amount you can put into ISAs for the year is £20,000 (with the exception of a Lifetime ISA which is £4,000).
You can choose whether you want to use this allowance in just one ISA, or if you want to split it into different types. If you choose to split, you can still only invest a total of £20,000 across all of your ISAs.
5. Huge investment opportunity.
With the tax benefits that come with a Stocks & Shares ISA, they can be a great opportunity for holding your investments for the long-term.
Many Stocks & Shares accounts let you choose your own investments, so you can tailor them towards your attitude to risk.
6. Easy access to your funds.
There are no restrictions on withdrawing your funds, although you may incur fees for doing so. With a Stocks & Shares ISA, you can monitor the growth of your savings and withdraw from your pot at any time.
7. Starting point for your financial planning.
A Stocks & Shares ISA can be a great starting point for your financial planning journey.
By taking the step to actively save your money and maximise it’s growth potential, you could be well on the way to achieving your financial goals.
With the right financial advice to manage your investments, you can make sure your assets are where you want them, and make sure their performance is constantly monitored.