How a Stocks & Shares ISA fits into tax year end planning

Here’s what a Stocks & Shares ISA does differently.

 

What a Stocks & Shares ISA does differently

A Stocks & Shares ISA allows you to invest in assets like funds or shares while shielding growth, dividends, and gains from tax. It’s designed for long-term investing rather than short-term saving.

 

Why the tax year deadline is important for investors

You receive a new ISA allowance of £20k every tax year, but unused allowance doesn’t roll over. Using what you can of your ISA allowance each tax year gives your money more time to grow tax-free and reduces future tax complexity.

 

How to approach investing before the deadline

You don’t need to invest a large amount. Using the ISA wrapper is often more important than the size of the contribution. Long-term investors benefit most from starting earlier rather than waiting.

 

Things to keep in mind

Investments can go down as well as up. So, while the risks may be higher than saving – so can the potential rewards.

Anything that you have saved over your three to six month savings buffer – that’s the cash you’ll need in an emergency – could see better returns over time if it is invested. That’s especially true with the tax advantages of a Stocks & Shares ISA.