12 Apr 2010
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Stuart Conlan
ISAs prove attractive as investors fear tax increases, AIC explains why
Transcript (pdf)
According to the latest Investor Confidence Index published by the Association of Investment Companies (AIC), the prospect of an increase in tax is the main financial concern for 2010. Worrying enough on its own but when combined with low interest rates currently being paid on cash deposits it’s no wonder that Individual Savings Accounts (ISAs) are proving attractive. Interestingly, the AIC’s research also showed that an increasing number of investors were putting their money into emerging markets. Emerging markets typically include countries like China; Brazil and Poland.
You can read this research on the AIC’s website at:
http://www.aitc.co.uk/Press-centre/AIC-investor-confidence-index1/
You can currently shelter up to £10,200 each tax year in a stocks and shares ISA and this year Baillie Gifford is running a special ISA offer up to 30 April, where all new and existing investors making a new ISA investment will receive a £10 Amazon Gift Certificate. The Baillie Gifford Investment Trust ISA allows you to invest in the stock market and gain exposure to the emerging markets mentioned above.
http://www.bailliegifford.com/pages/UKPersonalInvestors/ISAs/ISAs.aspx
Please remember that the value of stock market investments and any income from them is not guaranteed and may go down as well as up. Investors may not get back the amount originally invested. Current tax rates and reliefs and the tax treatment of ISAs may change. The value of any tax benefits will depend on investors' individual circumstances.