Your Cash Stocks And Shares ISA An Investment

It’s not very often the government lets you hide your money away and receive tax free savings or indeed tax free income from investments.

Usually this special treatment is reserved for the corporate global business community but with cash ISAs and Stocks and Shares ISAs  it is possible for the individual citizen to take part.

With tax issues as ever on the agenda and forms being filed, people are once again seeking out opportunities to save some money, no matter how little. There are two ways with regards to ISAs (individual savings accounts) that you can claw back tax or stop the tax man from getting at your money; the Cash ISA and Investment ISA – legally known as Stocks and Shares ISA.

The total you can invest in all ISAs is currently £11,280. This entire amount can be invested in a Stocks and Shares ISA or up to £5,640 in a cash ISA alone. To a lot of people that is a significant amount of money to put away for any duration, but although there are maximums there are very few minimums.

It is very simple to set up and get started with an Investment ISA with the a range of banks and fund managers who have an offering or package which would suit your situation and income. Like many cash ISA and stocks and shares ISAs, you can place your money in an account to receive interest or profit and end the agreement – with fee, at any time if there’s an emergency.

The difference between a cash ISA and a stocks and shares ISA is there there is no risk at all with the former, however with the later while you’ll be able to make a greater percentage of profit there is the risk that you could lose money overtime also. Hence the five to ten year recommendation when investing in an investment ISA.

Cash ISAs are great but the government has set up the process in such a manner that the business community can receive some carefully invested fund management money also. That entails banks and private fund managers approaching the citizens of the United Kingdom and pledging to deliver them returns above their initial Investment ISA amount.

With a Stocks and Shares ISA you can invest as little as ten pounds a month in a Stocks and Shares ISA and benefit from hiding money in a pot away from the tax man. With an Investment ISA you can escape Capital Gains Tax and any interest you earn will be tax free. Furthermore there is the scope of better returns over and above than a cash ISA. Find out more about Stocks and Shares ISAs here.

Lee Owen

Enthusiastic, opinionated and dry humoured internet vagabond.

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