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4th
May 2020
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5 Ways To Invest Tax Free In 2020

5 Ways To Invest Tax Free In 2020

We have provided 5 ways of investing your ISA allowance for this year if you are looking for inspiration!

Here are 5 investment ideas for tax efficient investing using your 2020-21 ISA Allowance of £20,000.

1. Index Tracker ISAs

An Index Tracker Fund will look to replicate the stock market by closely tracking performance – this will generally be done by buying the company shares in the index. You can avoid some costs with this form of fund as it avoids the charges associated with active fund managers.

Find the best rates on platforms offering Index Tracker ISAs.

2. Ethical ISAs

An Ethical ISA fund is a great way to invest in companies which align with your values and principles. This means you can avoid investing your money in endeavours which you might be morally opposed to, whilst still enjoying returns on your investment.

Find the best rates on platforms offering Ethical ISAs.

3. Structured Investment Plan ISAs

These type of investment ISAs provide investors with defined risks and defined returns over a defined investment term. If you like to know where you stand on what you can expect to get at the end of a set period based on set assumptions this type of plan maybe for you.

See here for For latest structured investment ISA plans.

4. Exchange-Traded Fund ISAs (ETFs)

ETFs are funds which give shares, which are then traded on the stock exchange. This type of fund gives you a wide access to different kinds of investments and assets, at a relatively low cost. They can either be actively managed by you or managed by a fund manager.

Find the best rates on platforms offering ETF ISAs

5. Climate Change Fund ISAs

For fans of Greta Thunberg looking to put their money where your mouth is, investing in a Climate Change Fund ISA will ensure that your money will be invested in a companies which are seeking to make a positive impact on the environment.

Find the best rates on platforms offering Climate Change Fund ISAs. 

Selected ISAs

FTSE 100 UCITS ETF Tracker

from iShares

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: Tracks FTSE 100 Index
  • Invest From: £50 pm
  • Investment Options: Provides exposure to the FTSE 100 index of the largest companies listed on the London Stock Exchange at a highly competitive price.

Available via Fidelity Fund Supermarket this is a super low cost FTSE 100 tracker with a 0.07% pa annual charge. The product has a record of tracking its benchmark to a high degree of accuracy and scored ahead of rivals on this measure. Income generated is reinvested.

The investment objective of the Fund is to deliver the net total return performance of the Benchmark Index (being the FTSE 100 Index), less the fees and expenses of the Fund. In order to achieve this investment objective, the investment policy of the Fund is to invest in a portfolio of equity securities that as far as possible and practicable consists of the component securities of the FTSE 100 Index, this Fund’s Benchmark Index. 

Please note the value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

FTSE Global Technology Index Fund ISA

from Legal & General

ISA Option
Allows ISA Transfers
Regular Savings
  • Fund Choice: Tracks FTSE World Technology Index
  • Invest From: £20 pm
  • Investment Options: Invests in the shares of global companies engaged in information technology activities e.g. Microsoft and Apple, as represented by the Index.

Why we like it: A low cost way of investing in shares of global companies engaged in information technology activities, as represented by the FTSE World Technology Index. You can invest up to £20,000 this tax year, with a low minimum of £100 lump sum or £20 per month, and you can manage your account easily online. 

This fund is available via Hargreaves Lansdown

Important: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Investment Income Plan ISAs

FTSE Quarterly Contingent Income Plan

from Meteor

Allow ISA Transfers
Annual Income Up to 6.10%
  • Counterparty: Barclays Bank plc
  • Term: Up to 10 Years

With the current record low interest rate environment, income is high up on the agenda for many investors and so the ability to receive 6.1% per year even if the FTSE falls by up to 20%, is certainly worth a closer look.

Important: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.

  • Potential quarterly income: 1.525% (equivalent to 6.1% annually)
  • Income paid even if FTSE 100 falls by 20%
  • Potential to kick out quarterly from year 2 onwards
  • Available for ISA, ISA transfers and direct investments
  • Capital is at risk if the FTSE 100 Index has fallen by more than 35% at maturity from it's initial level, in which case your initial investment will reduce by 1% for each 1% fall
  • Minimum investment £5,000
  • An arrangement fee applies to this plan
  • If you withdraw your money during the plan you may get back less than you originally invested

Important Information: Structured investment plans are not capital protected and are not covered by the Financial Services Compensation Scheme (FSCS) for default alone. There is a risk of losing some or all of your initial investment due to the performance of the underlying investment. There is also a risk that the company backing the plan known as the Counterparty may be unable to repay your initial investment and any returns stated.

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

High Income ISAs

High income ISA ideas:

ISAs Products

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

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