Finance Xoops

We have recently opened a stocks and shares isa after reading about the tax benefits of using the account. We have been experimenting with trading on the exchange markets and we wanted a way to protect our money from the tax man.  The stocks and shares isa was the answer we were looking for.

Be Exempt from Capital Gains Tax

It is possible to trade on the markets using the stocks and shares isa. Any money that you make, or lose, will come out of the account. In addition to the money you can make trading shares you can also add a certain amount from your own money each year.  This is capped at £10,680 and as long as you are over eighteen you are allowed to open a stocks and shares isa as well as a cash isa. If you have a normal cash isa then you may have to split the yearly allowance between the two accounts.

The beauty of the stocks and shares isa is that even if we earn more than £10,100 through the sales of the stocks and shares we will not be taxed for it as long as it goes into our isa. This makes perfect sense to us so we are thrilled that the stocks and shares isa exists.