ISA’s for the old and wrinkly
As I have mentioned before, a UK virgin share trader using an ISA (Individual Savings Account) as a trading umbrella makes a lot of sense as a great way to start your online trading journey. Above all it means you get to keep more of the profits. As much as I feel sorry for Mr Brown – he’s having a hard time at the moment – I need to hang onto as much money as I can.
Now where was I? Oh yes, individual savings accounts (ISA’s) are one of the most tax-efficient ways to invest. The good news is if you missed it is from 6 October 2009, the ISA limit increased to £10,200 of which up to £5,100 can be saved in cash for people aged 50 or over.
From 6 October, those aged 50 and over – or as my kids prefer to call us ‘sad old gits’ can now deposit £10,200 into their 2009-10 ISA, up to £5,100 of which can be in cash.
From 6 April 2010, this little treat will be extended to all savers, irrespective of their age.
Most online brokers offer ’self select’ trading ISA’s. This means that you can basically trade the money inside your self-select ISA without any capital gains tax liability or income tax on the profits.
Most broker sites have an ISA signup button on the homepage. And if you shop around you should be able to find one that has no ISA administration fees or inactivity fees. I use a couple including Interactive Investor, which has no setup or admin fees.
virgin
