Are you are benefiting from the tax opportunities available to you?
Making use of your Individual Savings Account, or ISA, can have a big impact over time. After all, when you invest through an ISA, any income and growth will be free from personal tax. Reviewing your investment portfolio is one of the best things you can do for you and your family.
Tax year deadline: 5 April 2020
|2019/2020 investment limits|
Each year you have an allowance that you can squirrel away into your ISA, or a child’s Junior ISA, for the future. These allowances can’t be rolled over to the next tax year, however, so use it or lose it.
Don't forget, you can also choose to transfer ISAs, Junior ISAs and Child Trust Funds (CTFs) you hold with other providers to M&G. This could be a great way of breathing new life into investments that are no longer meeting your expectations.
What can ISAs offer? A quick recap:
- No capital gains tax on any potential profits
- No income tax to pay on distributions received from investments
- You don’t have to declare your ISAs or Junior ISAs on your tax return
- ISAs don’t lock you in, so you have access to your money whenever you need it
- ISA income doesn’t affect your personal allowance or age-related allowance
Making the most of your ISA opportunity
If there’s a tax-saving opportunity available to you, we aim to make sure you’re kept informed, so you don’t miss out.
- Did you know, 16-18 year olds can open a junior ISA and cash ISA in the same tax year. This means that they are able to save up to £24,368 in a single year (in cash) tax-efficiently. (Please note that the M&G ISA is a stocks and shares ISA.)
- In terms of income, did you know that you could keep your money in a growth-focused equity fund (ie with little or no dividends) within an ISA and create an ‘income’ using withdrawals – which are also tax-free – rather than using dividends?
The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.
Please remember, the tax rules for ISAs and Junior ISAs may change in the future, and their tax advantages depend on your individual circumstances.
Whether you are targeting long-term growth or an income from your investments, looking to navigate uncertainty or even looking to invest in funds aiming to have a positive impact on society, there is a wide range of M&G equity, fixed income and multi asset funds that you can choose to invest in with an ISA.
Having the right mix of investments can help you on your way to achieving your long-term goals. Whether you are looking to add to, or build, your own diversified portfolio of funds, seeking a fund where asset allocation decisions are taken for you, or invest with a lump sum or with regular contributions, it’s all up to you.
As always, if you are unsure about the suitability of any investment, you should speak to a financial adviser. If you don’t already have one, you can find a financial adviser here.
Whatever challenges the future holds, regularly reviewing your investment portfolio and making use of the tax opportunities available, can help keep your savings goals on track.