Why an ISA is nicer

Few of us enjoy paying tax, which is why an Individual Savings Account (ISA) can be a great choice for investors.

Investment returns from ISAs are tax-free.

This means you pay no income tax or capital gains tax (CGT) when your investments go up in value or if they earn interest or dividend income.

Without an ISA, investors’ returns can be significantly reduced by tax.

Tax rates can be as high as 45% on savings interest and up to 39.35% on dividends, following a 1.25% increase in dividend tax from April 2022. Meanwhile, stockmarket gains can be taxed at up to 20%.

Nor do the tax benefits of an ISA come with restrictions on when you can access your money  — you can make withdrawals whenever you want from an ISA. 

No extra ISA fees with InvestEngine

Tax-free with easy access…what’s not to like?

Well, some investment firms will charge you extra to invest via an ISA.

But not InvestEngine.

Our Stocks & Shares ISA has NO account fee, so more of your money stays in your tax-free pocket. 

We offer commission-free DIY investing with a choice of more than 500 ETFs (exchange-traded funds). 

Or, if you’d prefer our experts to build and manage an investment portfolio for you, our Managed service costs just 0.25% a year (ETF costs also apply). 

And whichever you choose, the minimum investment is only £100. 

Important information

Capital at risk. Eligibility to invest in an ISA depends on personal circumstances. ISA rules apply. The value of your portfolio with InvestEngine can go down as well as up and you may get back less than you invest. ETF costs also apply. Tax treatment depends on personal circumstances and may be subject to change.

This communication is provided for general information only and should not be construed as advice. If in doubt you may wish to consult a professional adviser for guidance.

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