Investments and Savings
This guide is supplied for general information only. You should
seek specific advice for your individual circumstances before acting on any of
the information outlined below.
Whether it's because you have won the lottery or have built up a nice little
nest egg by saving on a regular basis, your money should be wisely invested so
that its spending power is protected for the future. Leaving large amounts
of money on deposit in banks or building societies may not be the best long term
answer. If you are considering ‘equity’ related investments it is
important to remember that the value of your investment and the income generated
from it may fall as well as rise and that there is no guarantee you will get
back more than you invested.
ISA's (Individual Saving Accounts)
You can invest up to £10,680 per tax year into an ISA. This can either
be made up entirely of stocks and shares, or a combination of cash and stocks
and shares. If your ISA contains a combination of the two, the investment limit
for the cash part is £5,340 per tax year. The cash element and the stocks
and shares element can be spread between two different providers.
Unit Trusts and Investment Trusts
In the case of unit
trusts the investor buys a unit which is part of a large fund invested
in a variety of companies. An investment trust which is a company
listed on the stock exchange and whose business is investing in other companies.
In both cases the investor is trusting his or her money to the judgement and
skill of the fund manager.
The tax treatment depends on the individual circumstances of each person and
may be subject to change in the future. It is important, however, that you
are aware that the value of units in unit-linked investments, as well as any
income which they generate, can fall as well as rise and that past performance
should not be treated as a guide to future returns.
Onshore Investment Bonds
An investment bond is a single
premium life assurance policy for the purposes of investment. These can be
designed to provide income or growth and have access to a range of investment
funds. Basic rate tax liability is accounted for within the
fund and higher rate taxpayers have an additional tax liability on encashment of
the bond or on the balance of withdrawals in excess of 5% per annum.
The tax treatment depends on the individual circumstances of each person and
may be subject to change in the future. It is important, however, that you
are aware that the value of units in unit-linked investments, as well as any
income which they generate, can fall as well as rise and that past performance
should not be treated as a guide to future returns.
National Savings products
Some of the least risky of
investment options are those offered by National Savings which raises money on
behalf of the UK Government. While investment returns are not necessarily
spectacular, they are nevertheless stable and in some cases tax-free. They
include National Savings Bank Accounts and Savings Certificates and various
forms of Savings and Income Bonds. It is important that you are aware that
the value of your investments, as well as an income which they generate , can
fall as well as rise and that past performance should not be treated as a guide
to future returns.
The tax treatment depends on the individual circumstances of each person and
may be subject to change in the future.
For further information, please contact Equus IFM
Ltd