What is a Stocks and Shares ISA?
You might 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, giving 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?
Tax-Free
ISAs are exempt from UK income and capital gains tax, meaning you get to keep more of the returns from your investments. Each financial year, you'll get a personal allowance that determines how much money you can put into an ISA - for the year 2023/2024, it's £20,000.
Portfolios
Your independent financial adviser will recommend a portfolio of multi-asset funds that has an appropriate investment risk level and is best suited to your anticipated needs in retirement.
Flexibility
Your Stocks and Shares ISA, together with our ongoing advice service, gives 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 usually be accessed whenever you need it.
