Tax-efficient Investments; ISAs
Because of their tax-efficient benefits, ISAs (Individual Savings Accounts) are considered a ‘must have’ by many savers looking to make the most of their money. Under current tax rules, an ISA enables you to invest money and receive any income earned from the investment free from income tax. Plus, you won’t have to worry about paying UK capital gains tax on any growth in value.
Stocks and Shares ISAs invest in Corporate bonds; stocks and shares and other assets that fluctuate in value.
Investors do not pay any personal tax on income or gains, but ISAs do pay unrecoverable tax on income from stocks and shares received by the ISA managers.
Tax treatment varies according to individual circumstances and is subject to change.
The value of the investment and the income they produce can go down as well as up and you may not get back as much as you put in.