What is a stocks and shares ISA?
You may associate the term ‘ISA’ with the cash savings account offered by your bank or building society – it stands for Individual Savings Account, and importantly any interest gained within an ISA is free from UK income or capital gains tax.
Stocks and shares ISAs operate similarly to their cash equivalents; however, rather than earning a fixed annual interest rate, your money is invested in a chosen portfolio allowing it the potential to produce a greater return. Stocks and shares ISAs are usually recommended as a long-term investment as this gives them a greater chance of outperforming a standard cash ISA.
Why choose a stocks and shares ISA?
ISAs are exempt from UK Income and Capital Gains Tax, meaning you get more from your investments.
Your independent financial adviser will recommend a portfolio appropriate for your investment risk level containing multi-asset funds. My Pension Expert recommends discretionary managed portfolios as well as smooth managed funds.
Your Stocks and Shares ISA, together with our ongoing advice service, give you the flexibility to change how your funds are invested if your objectives or circumstances change. Money invested in a stocks and shares ISA can be accessed whenever you need to.