Hargreaves Lansdown is the UK’s number 1 ‘investment supermarket’ for private investors. For more than 35 years, they have helped investors save time, tax and money on their investments. Hargreaves Lansdown is a secure, FTSE 100 company who are based in Bristol.
If you are looking for a tax-efficient and flexible way to invest then a Stocks and Shares ISA is the way forward. With all of your investments sheltered from capital gains tax and further income tax, it is becoming a way forward amongst the ever falling interest rates offered by banks.
During the tax year, you are able to put your annual allowance in to investments, innovative finance or cash ISAs, or any mixture of the three.
Whether you’d like to put away a little money each month or invest a lump sum, you could receive a higher return on your savings when compared to other ISA accounts. It’s worth bearing in mind that there is an element of risk involved. There is no guarantee that you will withdraw more than you paid in and there can even be losses.
No income tax or capital gains tax to pay on your ISA investments
Ready-made ISA: this account offers a simpler way to invest. This account allows you to choose from six pre-built portfolios which allow you to choose your investment goal and level of risk. It’s perfect for people who are new to investing, currently lack the confidence to choose their own funds or simply don’t have time to research potential investments.
With this account, your portfolio is regularly re-balanced to increase performance.
Do-it-yourself ISA: this option allows you to invest in over 2,500 funds with no charge when you buy and sell funds. You will be able to choose from shares listed on the UK, US, Canadian and European stock markets.
Not all ISA accounts permit transfers in, Hargreaves Lansdown permit transfers as long as you have sold your shares, process called a ‘Bed and ISA’.
It’s important to remember that ISA accounts do not have to permit transfers in. However, ISA providers do have to permit account holders to transfer their account to another ISA, this can be with either the same provider or a different one.
However, some ISAs will also impose a penalty charge for transferring out. This means that while it can be beneficial to periodically check if you could get a better deal elsewhere it is wise to first consider if any charge you would incur would actually negate the potential benefits of switching ISA.
This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.
Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.
15th February 2018
An ISA is an individual savings account that offers the chance for individuals to earn up to £20,000 tax-free interest.Not only can those who subscribe to an ISA benefit from tax-free interest from savings, but also enjoy the freedom to invest from their ISA and avoid paying tax on their returns.
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Very informative, find myself a good ISA account with best return in terms of interest.