Looking to invest in a Stocks and Shares ISA?

When it comes to your financial future, every penny counts. Paying more tax than you need to can limit how much you can grow your savings and investments. That’s why your annual £20,000 ISA allowance can be such a valuable benefit.

Tax appears to be everywhere we go in life. From the money we earn, to the products and services we buy. February 2022 research from the Taxpayers Alliance suggests the average household pays more than £1 million in tax over their lifetime. So it’s likely you’re more than doing your bit.

Your annual ISA allowance is a chance to look after your wealth and help it grow – tax-free – towards your future goals.

The question is – are you making the most of this brilliant opportunity?

Stocks & Shares ISA vs Cash ISA

Most of us are pretty familiar with Cash ISAs. They're savings accounts where you don't pay tax on your returns. The importance of saving money for the future cannot be overstated. It can offer you a safety net for emergencies and help you achieve your financial goals without the need to borrow.

Over the longer-term, there’s only so much you can achieve keeping your savings in a Cash ISA.

Enter the Stocks and Shares ISA. This is where your money is invested, with any growth and income you achieve free from tax. It could be a great way of growing your wealth and keeping more of your returns. And over time, it could make a big difference to your future.

What is a Stocks & Shares ISA?

The first thing to know about Stocks and Shares ISAs is they involve taking risk with your money. You invest in a way designed to grow your wealth, but the trade off is its value can go down as well as up.

That’s why they’re only suitable for long-term financial needs, five or more years away. As markets go up and down every day, committing your money for this long gives it the best chance of increasing in value. And of achieving higher returns than you might manage in regular savings accounts.

It’s all about taking the right level of risk for your situation and circumstances. To give yourself the chance of higher rewards that support your future goals. And if you’re thinking “I’ve no idea how much risk I could take”, don’t worry. This is how most of us feel. It’s why speaking to a financial adviser is highly recommended.

At Skipton, our team of experts are here to help.

Why invest in a Stocks & Shares ISA with Skipton?

A great reason to speak to an adviser is they can present options for using your Stocks and Shares ISA allowance. With recommendations to suit your personal circumstances and risk appetite.

At Skipton, we’ll typically recommend you invest into a fund, which invests into a range of different assets on your behalf. It includes areas like the stock market, plus less riskier areas such as bonds.

We call it a balanced approach. With our advice, your money can be exposed to the potential benefits of stock market returns to help grow your money. At the same time, your money is invested in other assets in order to spread the risk. But please be aware, the value of your funds may be less than you originally invested.

If it’s right for you, a balanced approach could give you peace of mind that your money has a better chance of achieving higher returns. All without taking more risk than you’d be comfortable with.

Stocks and Shares ISA benefits:

  • Pay no tax on investment growth or interest earned on the ISA
  • Invest up to £20,000 each tax year
  • Potential for a better rate of return than with a Cash ISA if you are comfortable with putting your capital at risk
  • You and your spouse or civil partner can inherit each other’s ISA savings and investments.

Why get advice from Skipton?

A Stocks and Shares ISA could be a great way of supporting your goals. But it’s all about making careful decisions that can support your long-term future across all your finances and assets.

At Skipton we’re here to offer personalised financial advice on growing your wealth. Our advisers will take the time to understand your circumstances and what you want to achieve. So they can present recommendations tailored to you.

The benefits of financial advice with Skipton are:

  • Invest at a risk level you’re comfortable with
  • Tailored recommendations to suit your needs
  • Free initial consultations to help you understand your options
  • A team of experienced experts to help you make the most of your investments
  • You only pay for our advice if you act on our recommendations
  • No pressure to take up our advice.

To receive advice, you’ll need to have £20,000 to invest or reinvest, or be happy to invest at least £500 a month.

Important Information

Please bear in mind stock market-based investments are not like building society investments as your capital is at risk and you may get back less than you invested. The value of your investments and any income from them may fall as well as rise. The tax treatment of your investments depends on your individual circumstances and prevailing legislation, both may change in future.

Ready to start your investment journey?

You’ll need to speak with one of our Financial Advisors to invest in a Stocks & Shares ISA. They’ll talk you through your options and answer any questions you might have.