If you want to save money on taxes and are a UK resident, one way to do so is to contribute to an Individual Savings Account (ISA). In the 2022/23 tax year, you can use an ISA to defer up to £20,000 of your income from taxation.

STOCKS & SHARES ISA

If you want to make the most of your ISA allowance this tax year, you should consider opening a Stocks & Shares ISA. You can invest in a variety of assets through a Stocks & Shares ISA, including shares, corporate and government bonds, unit trusts, investment trusts, exchange-traded funds, individual stocks and shares, and OEICs (Open Ended Investment Companies). Not only will your investment grow tax-efficiently, but you may also benefit from capital gains.

CASH ISA

Another possibility is to open a Cash ISA. With a Cash ISA, you can earn interest on your savings without having to pay tax on it. This makes it an excellent way to increase your savings while lowering your tax liability. Anyone over the age of 16 can open a Cash ISA, while those over the age of 18 can open an ISA that is invested in any combination of cash and shares.

If you need advice regarding your savings, contact us today otherwise please visit again tomorrow for the next instalment where we will look at what a LISA is and how it could help during high inflation times.