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The ISA tax saving worth £29 billion – what’s your share?

ISA savers and investors have trimmed £29 billion off their tax bills – a figure set to balloon if our new Chancellor hikes taxes

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Our new Chancellor, Rishi Sunak, has a tough job ahead. He’s under pressure to honour election promises to increase spending on the NHS, social care and schools.

He’s also inherited a fiscal target to avoid spending more than comes in each year.

It’s been suggested these competing demands simply aren’t achievable without raising taxes.

Higher taxes make tax shelters like ISAs even more appealing. ISA savers and investors have trimmed £29 billion off their income tax bills since ISAs were introduced in 1999.

If we see the tax hikes expected in the Budget this figure will only rise.

Lots of investors find adding money to a Stocks and Shares ISA every year a straightforward decision. Once you have read all the important information, you can open an account in minutes and rest assured your money is protected from UK tax.

This article should not be viewed as personal advice, should you be unsure if a course of action is suitable please seek advice. Tax rules change and benefits depend on individual circumstances. Unlike cash the value of investments can fall as well as rise so you may get back less than you invest.

Find out more about Stocks and Shares ISAs

If you’ve decided to shelter your wealth from the tax man the question then becomes where to put your tax-sheltered money?

An ISA investment option

It’s natural for UK investors to focus on their home market, but for those looking at expanding their portfolio there are some great opportunities.

Global funds offer international diversification in a single investment. Choose a tracker fund and you’re looking at a simple and low-cost way to diversify.

The Legal & General International Index Trust could be a well-placed addition to most portfolios. But, investing in this fund isn’t right for everyone. You should understand the specific risks of a fund before investing, and make sure any new investment forms part of a diversified portfolio.

The fund aims to match the performance of the FTSE World ex UK index. This means that there are no analysts researching individual companies, no stock pickers hunting for bargains or making predictions about the economy. The fund simply invests into every company in the index. This keeps costs to a minimum and allows the fund to track the index closely. It invests in emerging markets which are higher risk.

Learn more about Legal & General International Index Trust inc. charges

Legal & General International Index Trust Key Investor Information

Open an ISA

If you can’t decide where to invest don’t let uncertainty stop you from using this tax year’s £20,000 ISA allowance.

You can open or top up your HL Stocks and Shares ISA now with cash, securing this year’s allowance, and invest when you feel the time is right.

Once you have read the key features and terms and conditions, opening or topping up your ISA takes just a few minutes and will mean you’ve taken an essential step towards sheltering your investments from UK taxes.

See how to open an ISA in minutes

Important notes

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

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