If you’re new to trading and investing, it’s a good idea to open an ISA account as soon as possible. An ISA stands for an Individual Savings Account and it is a tax-free account that allows you to save and invest your money, which, in turn, will help you get your finances in order. Still, it will provide you with valuable tax benefits and flexibility when making investments.
With an ISA, there’s no need to worry about losing money or paying too much tax when investing your money. However, the government does limit the total amount of money you can save or invest in an ISA each tax year, which is usually about £20,000.
If you’re a UK resident 18 years of age or over, you can open and pay into an ISA for tax purposes and you can hold more than one ISA at a time, but you cannot exceed the deposit amount across all your accounts. (For example, even if you have three accounts, you still can only put £20,000 in savings across all of them.)
Benefits of ISAs
ISAs offer several benefits to new traders:
There are several tax benefits associated with ISAs. For instance, you …