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Welcome to the February edition of our newsletter. The new tax year is approaching, so we’re looking at the benefits of Individual Savings Accounts (ISAs), and the opportunities these provide for your money to grow ‘tax free’.

 
 

We hope you’ll find this useful, please contact our office if you’d like to discuss the points covered in this newsletter, or any other aspect of your financial planning.

 
 

ISAs offer a flexible and tax-efficient home for your money

 
     
 

Whatever your financial aims and aspirations, there are a myriad of saving and investment opportunities, however, your first consideration should be an ISA.

 
 

The principle benefit of an ISA is your money can grow free of income and capital gains tax. ISAs are the most tax-efficient and flexible way of saving for your future, while making the most of your money.

Each year, there’s a limit on how much you can invest into ISA – the allowance for 2018/19 is £20,000, and the Junior ISA (JISA) allowance is £4,260.

Cash ISAs may be the answer for some element of your savings, however, they have limitations when it comes to long-term growth. Anyone over the age of 16 can open a cash ISA, these should be viewed simple savings accounts, where your money is secure.

 

"With a stocks and shares ISA you can achieve growth on your investment and enjoy a host of tax benefits."

 
 

Low interest rates and rising inflation are making the stock market more favourable for medium-and long-term investments (five years or more), which is why many people are turning to stocks and shares ISAs to achieve real growth for their money.

With access to a range of funds to meet different investment objectives and attitudes to risk, as well as access to your money when you need it, a stocks and shares ISA offers the potential for higher returns.

 
 

No need to declare on
your tax return

 

Access your money
at any time

 
   
 

"A Junior ISA is a simple, flexible and
tax-efficient way to give children
a financial head start."

 
 

We would all like our children to be financially secure when they grow up, and by starting to save early you can provide a financial boost for future generations. A JISA offers a simple, flexible and tax-efficient way to do so. You can save up to £4,260 tax free and, once set up, funds can be added at any time, providing an ideal birthday or Christmas gift.

Upon reaching 18, the money in a JISA converts into an ‘adult’ ISA. This can provide valuable help for university fees, as costs have risen significantly. The Institute for Fiscal Studies has confirmed that students in England are going to graduate with average debt of £50,800. Interest charges during this period will be in the region of £5,800. Therefore, planning has never been so important. Children aged between 16 and 17 can hold an ‘adult’ cash ISA in addition to their Junior ISA, which presents another opportunity not to be missed.

 
 

No capital gains tax on any investment growth

 

No additional income tax incurred on any regular withdrawals

 
 

Whether you want to invest a lump sum or smaller monthly amounts, ISAs and JISAs present excellent investment opportunities, with tax benefits. So, if you’re looking for tax-free income and growth, an ISA is an ideal home for your money. But, you can’t carry any unused ISA allowance into the next tax year, so if you don’t use it, you’ll lose it.

At the Taylor Burke Partnership, we can help you make the right investment decisions to achieve your financial goals – whatever they may be. Please contact us for advice on how you can make your money work harder for you by keeping it in a tax-efficient wrapper of an ISA.

 
 

To find out more about please call our office on 01727 738000,
alternatively, please email, info@taylorburke.co.uk.