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Be smart with your investments

Paystream News

David McManus

Wednesday 21st Feb, 2018

Despite offering relatively low interest rates, for many people ISAs are still a popular tax-free method of saving. Those wishing to save now have an abundance of ISAs available to them, including the Help to Buy ISA, the new Lifetime ISA and the Innovative Finance ISA which is designed to encourage peer-to-peer lending.


The overall annual subscription limit for ISAs is £20,000 for the current tax year. If you need help and guidance in deciding which particular investment suits you best you should consult an independent Financial Advisor.


There are various tax incentives for investing in companies such as the Enterprise Investment Scheme (EIS) and the Seed EIS. Whilst EIS offers 30% income tax relief, SEIS offers 50% relief, although the investment limits in the latter are far less than the former.


There is also relief against Capital Gains Tax (CGT) when you come to sell the investments, provided you have held them for at least three years. It's also possible to carry back qualifying EIS investments to a previous tax year to accelerate tax relief.

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