NEW ISA ALLOWANCE FROM JULY

From the 1st of July 2014, changes in the March budget mean that each of us are now able to invest “tax free” a maximum of £15,000 into a 2014/2015 ISA, as advised by Stockport based David Wherrit, MD of Investment 4 All . David has provided a summary guide to the new ISA’s, applicable in July this year.

The Chancellor of the Exchequer introduced a number of “wow” factors in his March budget this year; one option would be to put all your capital into a Cash ISA with your bank as you feel that your money is safe, but with interest rates running at lower than the rate of inflation, you may be of a mind that you wish to take some risk with your capital.

Fortunately, all or part of your ISA allowance could be invested into collective investments like Unit Trust Funds for example, which are typically made up of a selection of shares, bonds, property and cash. Your attitude towards risk, will determine what percentage of these assets you want as a priority.  

Selecting a number of different Unit Trust Funds will give you more diversification of your assets and reduce your overall risk. Fairly cautious funds may only have a small share content, but would likely have a larger content of Gilts and Corporate Bonds. Investments can go down as well as up. For a full explanation of your options, contact an independent financial adviser.