S&T Asset Management LLP of Marple are encouraging clients to make full use of the increased ISA allowance from 1 July 2014.
From 1 July 2014 all Individual Savings Accounts (ISAs) will become New Individual Savings Accounts (NISA’s) allowing savers to shelter up to £15,000 in any one tax year. This means that over the space of just five years, a couple utilising their full allowances could shelter £150,000 from both income tax and capital gains tax. This allowance has been increased by over 26% from the previous £11,880 per annum limit.
Simon Chatterton explains:
“Many recent press articles have focused on the compounding effect of reinvested dividends, which can significantly increase the ISA value given that both income and capital gains are tax free with the ISA.
“The Government has also relaxed the restrictions on certain investment classes which can be held within ISAs to include shares quoted on the Alternative Investment Market (AIM), which have the added advantage of being exempt from stamp duty, and in certain cases if held for over two years, are classed as being outside an individual’s estate for Inheritance Tax purposes.
“Additionally whilst ISAs will form part of the overall investment strategy, they remain flexible, allowing investors to withdraw tax free income at any time as well as the withdrawal of some or all of the capital without tax implications.”
Of course investing in the stock market through an ISA brings risks as share prices can fall as well as rise and investors may not get back the amount they invest.
S&T Asset Management manages investment portfolios for individuals, trusts, charities and corporate entities with a wide range of objectives and requirements. We believe that the business of investment is extremely personal and would always be happy to meet with anyone who might require our services.
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