ISAs

With an ISA you can save up to £7,200 a year and you do not pay tax on the income you receive or capital gains tax on any growth. The limit will increase to £10,200 from 6 April 2010 (6 October 2009 for those aged over 50).

An ISA can be made up of cash or longer term investments like stocks and shares (investment ISA.) You can invest up to £7,200 in an investment ISA (maxi ISA), or you can invest in two mini ISAs; up to £3,600 in a cash ISA and £3,600 in an investment ISA.

ISAs represent a highly tax efficient way of saving and will form the cornerstone of many peoples investments. Whether you opt for a cash ISA or an investment ISA (or a combination of both), will depend on your circumstances e.g. your need for liquid capital, your attitude to investment risk and your investment timescales.

Whichever route you choose it is important that your endeavour to achieve the best returns and ensure investments meet your current objectives. Regular reviews of your ISA holdings can therefore be beneficial. It is a simple process to transfer existing holdings to a new manager.

If you invest in an investment ISA it is often beneficial to spread your risk by utilising vehicles such as unit trusts. These are managed by a dedicated professional investment manager and invest in a wide range of stocks and shares so your investment risk is spread.

The use of investment 'supemarkets' mean that you can often consolidate your ISA holdings, without additional costs. You benefit from a single consolidated statement whilst retaining a wide range of investment funds for diversification of risk.

Contact us if you wish to review ISA holdings or strategy, or are interested in consolidating your investments.