Wed, February 5, 2025

Stocks and shares ISAs: everything you need to know

The article from MoneyWeek explains how Stocks and Shares ISAs (Individual Savings Accounts) function in the UK. It outlines that ISAs allow individuals to invest up to £20,000 annually in stocks, shares, or funds without incurring capital gains tax or dividend tax on the returns. The piece discusses the different types of ISAs, including the Lifetime ISA for those aged 18-39, which offers a government bonus, and the Junior ISA for children. It also covers the benefits of ISAs, such as tax-free growth, the flexibility to choose investments, and the potential for higher returns compared to traditional savings accounts. Additionally, the article provides guidance on how to open an ISA, the importance of diversification, and considerations for choosing between managing your own investments or opting for a managed fund. It emphasizes the need for understanding one's risk tolerance and investment horizon when selecting assets within an ISA.

Read the Full MoneyWeek Article at:
[ https://moneyweek.com/personal-finance/how-stocks-and-shares-isas-work ]