You have a £11,280 Individual Savings Account (ISA) allowance this tax year. Half of this can be invested in cash, and the other half in stocks and shares.
Most income from an ISA is tax-free, and any profit made on sale is free from Capital Gains Tax. Therefore, ISAs are a very tax-efficient form of investment.
Don’t forget your kids
In addition, children under the age of 18 can have a Junior ISA. The maximum annual investment is £3,600. The cash usually has to stay in the fund until the child reaches the age of 18, but these can be a really good way to fund a savings pot, perhaps for a university fund or to help put them on the property ladder.
Children over the age of 16 can invest up to £5,640 in an adult ISA as well as the Junior ISA.
Would you like to know more?
Of course, you should take detailed advice before making any final decision and, if you’re thinking of investing, speak to an Independent Financial Adviser.
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