For some investors, first time or experienced, and many financial advisers alike, this period is what they know as and is referred to by them as the “Start of the ISA season”. (ISA stands for “Individual Savings Account”)
However, nothing could be further from the truth. The “ISA season” for the current tax year started on 6th April 2011 and is due to end on 5th April 2012.
So for those who invested their maximum 2011/12 allowance on or soon after 6th April: Congratulations! You will have benefitted from a whole year’s worth of tax free investment activity including both income and capital growth or gains (except for the 10% dividend credit – which can’t be mitigated anyway).
Once your money has been invested within an appropriate Stocks and Shares ISA, your investment can be left to grow as part of a properly balanced portfolio or, if short term market conditions require, switched between different funds within the ISA to take tactical advantage of the immediate situation – all this can be achieved without concern about income tax or capital gains tax.
But for those who have yet to invest their annual ISA allowance – it is not too late to make your investment – either new cash investment or reinvestment from existing non ISA funds (be sure to check any tax implications for realising non tax-sheltered investments).
Just remember – the rule for investing into an ISA and the current ISA allowance is: Use it or LOSE it! That’s right. If you do not use your ISA allowance before 6th April ( ie the end of 5th April) then you will lose the use of the allowance forever.
That would be a crying shame…..
Please remember that the value of an investment and any income from it can go down as well as up and you might not get back the amount you originally invested. Past performance is not a guide to future performance.
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