Investment Solutions UK: Tax-Efficient Option for You

At the same time, citizens are getting more interested for tax-efficient investments and for this they are opting for ISA or individual savings account.

We can say that the ISA is an 'envelope' into which investors can place money to give them tax efficient status. These are tax-free savings accounts which means you as an investor do not have to declare any income or capital gains you receive to the Taxman. You can save up to £7,000 each financial year and you might know that a financial year runs from 6th April until the 5th April the following year.

For the sake of you knowledge I would like to add that ISAs were brought in by the Government in April 1999 to replace Tax Exempt Special Savings Accounts (TESSAs) and Personal Equity Plans (PEPs) and are guaranteed to run until at least 2010.

Furthermore, there are two types of ISAs, first is Maxi ISA and second is Mini ISA. And an individual can only contribute to either one Maxi ISA or up to two Mini ISAs (one for each component), each tax year. You must know before investment that money cannot be invested in both a Mini and Maxi ISA in the same financial year.

Hence, if you want to opt for tax-efficient investment solutions UK then ISAs would be a nice option.