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ISA SEASON

Pubslihed: 09/02/2009

Rumours of the demise of ISA investments have been greatly exaggerated.

There are still good reasons to invest in ISA’s - in fact now is probably the best time for several years. The basic reason to invest is that it is a tax allowance - free of both income tax and capital gains tax. You can invest in cash and / or stocks and shares. There is an annual limit of £7,200 per person and this can be a combination of cash (£3,600 limit) or stocks and shares (up to £7,200). You can invest in the whole range of funds from no/ low risk to the most speculative investment markets.

The ISA year is linked to the tax year and you have until the 5th April to invest in this year’s ISA. You can invest next year’s allowances from 6th April.

With funds prices as low as they are, this is a very good time to invest. You do not have to invest lump sums. You can save on a monthly basis - this has the dual advantage of phasing your investment in during good and bad times and deferring the cost over a 12 month period. Contact your adviser ASAP if you wish to invest this tax year.