Tax Free Savings and Investments

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ISAs The ISA is a well Wealth Activator Code Review -known and popular way of saving money, tax-free. Different types of ISA deliver different benefits and advantages:

The standard cash ISA works like a savings account, except the interest you accumulate isn't taxed. While you may have easy access to your money in a cash ISA, not all plans have a great rate of interest.

An investment or share ISA allows you to hold stock, such as shares and funds, in your account and allow them to grow tax-free. You need to consider the risk carefully when you choose your shares and bonds, since you'll want the highest possible returns and lowest risk. It's a good idea to consult a financial advisor to help make your choice.

There is a limit to the amount of money you can put into an ISA each year (£10,200 for 2010/11). In addition, the capital gains tax means that your money's tax relief extends to a certain limit (£10,100 for 2010/11). You should consider whether it makes sense to save or invest your money within an ISA wrapper.

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