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Legal & General offers many options for investing in an ISA (Individual Savings Account) meaning you can shelter up to £7,200
each tax year from personal income and capital gains taxation. Choose from a range of different types of investment including
index-tracking ISAs or actively managed ISAs. Start your ISA online today from £500 lump sum or £50 a month.
Remember
your investment is not guaranteed, the value may fall as well as rise and the current tax situation may change in the future.
ISA stands for Individual Savings Account. An ISA is a tax-efficient way of saving. It shelters your money from personal income
and capital gains tax.
There are limits on the number of ISAs you can take out each year. You have an annual ISA investment
allowance of £7,200, and you cannot exceed this. You can invest all £7,200 in a stocks and shares ISA, or up to £3,600 in
a cash ISA and the remainder of the £7,200 in a stocks and shares ISA.
If you'll be aged 50 or above on 5 April 2010,
your ISA limit for this tax year is increasing to £10,200 from 6 October 2009 (£5,100 for a cash ISA).
The stocks and
shares element of your ISA can be invested in any of Legal & General's unit trusts (except the Cash Trust). You should also
remember that your investment is not guaranteed, the value may fall as well as rise and the current tax situation may change
in the future.
Bonds are a type of fixed interest security, which is in effect a method of 'lending' money to the government or a company.
When you invest into a corporate bond fund we lend your money to companies who will then agree to pay interest on the amount
over a certain period of time. Corporate bonds are issued by different companies at varying rates of interest. Generally speaking,
the more secure a company is, the lower the rate of interest it will need to attract investors. You should also remember that
your investment is not guaranteed and the value may fall as well as rise.
A unit trust is simply a pool of individual investors money, which buys a spread of investments. The trust is divided into
units. The number of units you buy represents your share of the trust.
These investments can range from index-tracking
trusts which will buy shares to track a variety of indices, or actively managed trusts where the stocks or other investments
are picked and managed by a fund manager.
You can either invest straight into a unit trust or wrap up to £7,200 each
tax year in an ISA. If you'll be aged 50 or above on 5 April 2010, your ISA limit for this tax year is increasing to £10,200
from 6 October 2009 (£5,100 for a cash ISA). There is no limit to the amount that you can invest in a unit trust, although
the maximum online investment is £50,000. You must also remember that unit trusts are not tax free and although there is no
minimum period, unit trusts are designed to be a long-term investment of at least five years. You should also remember that
your investment is not guaranteed and the value may fall as well as rise.
FURTHER INFORMATION HERE
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