Risk warning: The value of investments and derived income can fall. Investors may get back less than they invested.

Tag: Tax Year

Maximise your savings before the end of the tax year with a stocks and shares ISA

Posted on by shardadmin

This article is not advice or a recommendation to buy, sell or hold any investment. All trading involves risk. Losses can exceed deposits.

An Individual Savings Account, known as an ISA, can be a great option for an individual to maximise their savings. Up to £20,000 per tax year can be subscribed to the tax-free wrapper. And with the end of the tax year fast approaching, now is the time to act if you have not yet exhausted your ISA allowance.

A stocks and shares ISA is an attractive solution as the returns on investments can offer higher returns than alternative investments. With a stocks and shares ISA, an individual doesn’t pay income tax on any interest or dividends received within the wrapper, nor any Capital Gains Tax on investment returns. Any Income or Capital Gains received within an ISA won’t impact the annual ISA allowance.

Cash ISAs are the most popular ISA solution, although interest rates can be unattractive and sometimes offer lower interest rates than a traditional bank savings account.  However, the benefit of ISA’s is that there is no ‘all in’ decision to be made. Individuals can choose to split their ISA allowance across different kinds of ISA options, meaning, they can combine a cash ISA with a stocks and shares ISA.

A stocks and shares ISA can include shares in companies, government and corporate bonds, gilts, and collective’s (unit trusts and investment trusts), allowing an individual to form a diversified investment portfolio.

In the current tax year (up to 05 April 2019) and the coming tax year, individuals can save up to £20,000 in an ISA account. However, the ISA will roll over and new subscriptions are added to the previous tax year which can result in a larger investment pot.

With considerable tax benefits and potential better returns from suitable investments, a stocks and shares ISA can offer a great solution for those looking to plan for their future or utilise savings on top of an existing pension plan. You can also plan for your child’s future by utilising a Junior ISA (JISA) which allows up to £4,128 to be subscribed in the current tax year. Whilst a stocks and shares ISA can offer enticing returns, individual due diligence is always necessary prior to any investment being made. The value of an investment may go down as well as up and you may not get back the money you invested.

We looked at a comparison between £10,000 invested, 9 years ago in a traditional bank savings account, cash ISA, and stocks and shares ISA.

  • The stocks and shares ISA had an annualised return of 4.41%. This was based on the FTSE 100 Index Total Return (inc dividends) and generated a £5,396 return from the original investment.
  • The cash ISA had an annualised negative return of -0.67% and made a loss of £650, due to inflation.
  • The standard bank savings account also had annualised negative return with a loss of £1,253, also due to inflation.

 

Information and details are correct as of 18 March 2019. Past performance is not a guide for future returns.

Information and details are correct as of 18 March 2019. Past performance is not a guide for future returns.

 

The Shard Capital Stockbroking team are highly experienced in portfolio management and diversification and can tailor an investment solution for an individual looking to start or grow their ISA.

If you would like more information on a stocks and shares ISA or an alternate investment solution, please contact the Shard Capital Stockbroking team.

 

Important Information –

This document has been prepared and issued by Shard Capital Partners LLP (“Shard Capital”), which is authorised and regulated by the Financial Conduct Authority.

This document is a marketing communication and not independent research. As such, it has not been prepared in accordance with legal requirements designed to promote the independence of investment research.

This document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities, or related financial instruments. It does not constitute a personal recommendation as defined by the Financial Conduct Authority, nor does it take account of the particular investment objectives, financial situations or needs of individual investors. The information contained herein is obtained from public information and sources considered reliable. However, the accuracy thereof cannot be guaranteed.

The information contained in this document is solely for use by those persons to whom it is addressed and may not be reproduced, further distributed to any other person or published, in whole or in part, for any purpose, at any time, without the prior written consent of Shard Capital. This document may not be distributed to any persons (or groups of persons) to whom such distribution would contravene the UK Financial Services and Markets Act 2000. Moreover, this document is not directed at persons in any jurisdictions in which Shard Capital is prohibited or restricted by any legislation or regulation in those jurisdictions from making it available. Persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.

Shard Capital or its employees may have a position in the securities and derivatives of the companies researched and this may impair the objectivity of this report. Shard Capital may act as principal in transactions in any relevant securities or provide advisory or other service to any issuer of relevant securities or any company connected therewith.

None of Shard Capital or any of its or their officers, employees or agents accept any responsibility or liability whatsoever for any loss however arising from any use of this document or its contents or otherwise arising in connection therewith. The value of the securities and the income from them may fluctuate. It should be remembered that past performance is not a guarantee of future performance. Investments may go down in value as well as up and you may not get back the full amount invested. If you are unsure of the suitability of share dealing specifically for you then you should contact an Independent Financial Adviser, authorised by the Financial Conduct Authority. By accepting this document, the recipient agrees to the foregoing disclaimer and to be bound by its limitations and restrictions.

Shard Capital has in place a Conflicts of Interest Policy relating to its research and marketing communication activities, and disclosure and conflicts in general is available on request.”

An introduction to Stocks & Shares ISAs: Part 1 of our end of tax year series

Posted on by shardadmin

This article is not advice or a recommendation to buy, sell or hold any investment. All trading involves risk.

 

Now is the time to prepare for the end of the tax year with an Individual Savings Account, commonly referred to as ISA – a beneficial vehicle for long-term savings, sheltered from taxation.  ISA’s enable individuals to save or invest money without paying income or capital gains tax on investment returns accrued.  For each tax year, there’s a limit to the amount that can be invested through an ISA, termed the annual allowance. For the 2018/19 tax year, the allowance is £20,000.

It should be remembered though that tax rules are liable to alteration, and personal circumstances can affect how beneficial they are.

 

Stocks and Shares ISAs

Stocks and Shares ISAs were introduced in 1999 and provide retail investors resident in the United Kingdom with one of the most tax efficient investment wrappers available: returns generated are free from Capital Gains Tax, while dividends received within an ISA will remain tax free and won’t impact your dividend allowance.

Whilst Cash ISAs are the most popular, interest rates are poor currently, and have been for a while.  Stocks and Shares ISAs are not limited by these rates in the same way, and as long as you are happy with the level of risk, they can offer an effective and efficient vehicle for saving.

Within a Stocks and Shares ISA it is possible to hold a variety of investments, including funds, shares and corporate bonds, amongst others, protecting any returns from tax.  They are generally regarded as being most effective for longer term investing, as they can produce significantly higher returns.  It should be remembered however that there is an element of risk involved with Stocks and Shares ISAs; the value of your investment can go down as well as up, so it is possible to lose money.

 

Junior Stocks and Shares ISAs (JISAs)

Junior Stocks and Shares ISAs allow parents or guardians with parental responsibility to invest in a tax efficient investment wrapper on behalf of a child. The parent or guardian responsible maintains control of the Junior ISA until the child turns 18 years of age, but as soon as a subscription has been made the money becomes the child’s.  JISAs were introduced on 1 November 2011 and replaced the old Child Trust Fund Schemes.  The Junior ISA allowance for current tax year which runs from the 06th April 2018 to the 05th April 2019 is £4,260

 

Who can open an ISA?

The individual must be:

  • 16 years or above for a cash ISA
  • Your child must be under 18 years for a Junior ISA
  • 18 years or above for a Stocks and Shares ISA
  • Resident in the UK
  • A Crown servant (E.g. Diplomatic or overseas civil service) or their spouse or civil partner if not residing in the UK

 

The Shard Capital Stockbroking team are highly experienced in portfolio management and diversification and can tailor an investment solution for an individual looking to start or grow their ISA.

If you would like more information on a stocks and shares ISA or an alternate investment solution, please contact the Shard Capital Stockbroking team.

 

 

Important Investment Information –

“This document has been prepared and issued by Shard Capital Partners LLP (“Shard Capital”), which is authorised and regulated by the Financial Conduct Authority.

This document is a marketing communication and not independent research. As such, it has not been prepared in accordance with legal requirements designed to promote the independence of investment research.

This document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities, or related financial instruments. It does not constitute a personal recommendation as defined by the Financial Conduct Authority, nor does it take account of the particular investment objectives, financial situations or needs of individual investors. The information contained herein is obtained from public information and sources considered reliable. However, the accuracy thereof cannot be guaranteed.

The information contained in this document is solely for use by those persons to whom it is addressed and may not be reproduced, further distributed to any other person or published, in whole or in part, for any purpose, at any time, without the prior written consent of Shard Capital. This document may not be distributed to any persons (or groups of persons) to whom such distribution would contravene the UK Financial Services and Markets Act 2000. Moreover, this document is not directed at persons in any jurisdictions in which Shard Capital is prohibited or restricted by any legislation or regulation in those jurisdictions from making it available. Persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.

Shard Capital or its employees may have a position in the securities and derivatives of the companies researched and this may impair the objectivity of this report. Shard Capital may act as principal in transactions in any relevant securities or provide advisory or other service to any issuer of relevant securities or any company connected therewith.

None of Shard Capital or any of its or their officers, employees or agents accept any responsibility or liability whatsoever for any loss however arising from any use of this document or its contents or otherwise arising in connection therewith. The value of the securities and the income from them may fluctuate. It should be remembered that past performance is not a guarantee of future performance. Investments may go down in value as well as up and you may not get back the full amount invested. If you are unsure of the suitability of share dealing specifically for you then you should contact an Independent Financial Adviser, authorised by the Financial Conduct Authority. By accepting this document, the recipient agrees to the foregoing disclaimer and to be bound by its limitations and restrictions.

Shard Capital has in place a Conflicts of Interest Policy relating to its research and marketing communication activities, and disclosure and conflicts in general is available on request.”

Just over 24 hours until the end of the tax year!

Posted on by shardadmin

With just one day until the end of the tax year, there’s still time to consider your tax options and maximise your investment potential; we’ve highlighted these below –

(More information can be found at https://www.gov.uk/capital-gains-tax)

 

£20,000 ISA allowance

An Individual Savings Account (ISA) can be a great option for those looking to maximise their savings now and in to the future, as you can subscribe up to £20,000 in the current tax year where all income and capital gains are tax free. A stocks and shares ISA can be an attractive solution as they can offer higher returns than alternative investments. Also, to note, an ISA works on a rolling basis, so your subscription can potentially be added to previous tax years subscriptions.

Remember your investment can fall as well as rise and you could get back less than you invested.

 

£11,300 Capital Gains Tax (CGT) allowance 

Your stocks and shares, and other investments are potentially liable to CGT, therefore where possible it is important to utilise the current tax year’s CGT allowance of £11,300.

 

Used your £11,300 Capital Gains Tax allowance? What about your spouse?

By gifting an investment that’s liable to CGT to your spouse (ie: husband and wife), you can potentially utilise their annual CGT allowance.

 

The Shard Capital Stockbroking team are highly experienced in portfolio management and diversification and can tailor an investment solution to suit your individual requirements.

If you would like more information on the above, or an alternate investment solution, please contact the Shard Capital Stockbroking team.

 

Important Investment Information

The views above are published solely for information purposes and are not to be construed as a solicitation or an offer to buy or sell any securities, or related financial instruments. It does not constitute advice or a personal recommendation as defined by the Financial Conduct Authority (“FCA”) or take into account the particular investment objectives, financial situations or needs of individual investors. The views above are based on public information and sources considered reliable. All investments should be held for the long term as their value can fall as well as rise, therefore you could get back less than you invest.

If you are unsure about the appropriateness of an investment for your circumstances, please seek financial advice.

No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This publication has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. It is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Figures correct as at 26 March 2018 unless otherwise stated. This publication is issued by Shard Capital Partners LLP, 20 Fenchurch Street, London, EC3M 3BY United Kingdom who are authorised and regulated by the Financial Conduct Authority.

Shard Capital has in place a Conflicts of Interest policy relating to its research and marketing communication activities, and disclosure and conflicts in general is available on request.

Source of information: https://www.gov.uk/capital-gains-tax

Just over one week until the end of the tax year!

Posted on by shardadmin

With just over one week until the end of the tax year, there’s still ample time to maximise your investment potential with a few tax options to consider; we’ve highlighted these below –

(More information can be found at https://www.gov.uk/capital-gains-tax)

 

£20,000 ISA allowance

An Individual Savings Account (ISA) can be a great option for those looking to maximise their savings now and in to the future, as you can subscribe up to £20,000 in the current tax year where all income and capital gains are tax free. A stocks and shares ISA can be an attractive solution as they can offer higher returns than alternative investments. Also, to note, an ISA works on a rolling basis, so your subscription can potentially be added to previous tax years subscriptions.

Remember your investment can fall as well as rise and you could get back less than you invested.

 

£11,300 Capital Gains Tax (CGT) allowance 

Your stocks and shares, and other investments are potentially liable for to CGT, therefore where possible it is important to utilise the current tax year’s CGT allowance of £11,300.

 

Used your £11,300 Capital Gains Tax allowance? What about your spouse?

By gifting an investment that’s liable to CGT to your spouse (ie: husband and wife), you can potentially utilise their annual CGT allowance.

 

Bed and Spouse

This is a clever way to make use of your annual CGT allowance and/or realise your losses for future use. You can sell your stocks and shares to your spouse which enables the original holding to be maintained. This could also be additionally beneficial with regards to dividends should your spouse fall in to an overall lower income tax bracket.

 

Bed and ISA

This initiative works like a ‘Bed and Spouse’, however rather than your spouse purchasing stocks and shares, you can repurchase these within a stocks and shares ISA which is a tax-free wrapper.

 

Used your capital gains allowance and joint allowance? Realise your losses

If you’re expecting to realise more gains than your £11,300 CGT allowance, and none of the above can be considered, realise your losses by selling some of your assets to reduce your tax liability. Important to note, a capital loss can be reported to the HMRC for up to 4 years from when the loss occurred and can be used to offset future gains.

Remember that the tax treatment depends on the individual circumstances of each client and may be subject to change in the future.

 

The Shard Capital Stockbroking team are highly experienced in portfolio management and diversification and can tailor an investment solution to suit your individual requirements.

If you would like more information on the above, or an alternate investment solution, please contact the Shard Capital Stockbroking team.

 

Important Investment Information

The views above are published solely for information purposes and are not to be construed as a solicitation or an offer to buy or sell any securities, or related financial instruments. It does not constitute advice or a personal recommendation as defined by the Financial Conduct Authority (“FCA”) or take into account the particular investment objectives, financial situations or needs of individual investors. The views above are based on public information and sources considered reliable. All investments should be held for the long term as their value can fall as well as rise, therefore you could get back less than you invest.

If you are unsure about the appropriateness of an investment for your circumstances, please seek financial advice.

No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This publication has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication. It is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Figures correct as at 26 March 2018 unless otherwise stated. This publication is issued by Shard Capital Partners LLP, 20 Fenchurch Street, London, EC3M 3BY United Kingdom who are authorised and regulated by the Financial Conduct Authority.

Shard Capital has in place a Conflicts of Interest policy relating to its research and marketing communication activities, and disclosure and conflicts in general is available on request.

Source of information: https://www.gov.uk/capital-gains-tax