Why invest in a Stocks and Shares ISA?

Taxes are going to rise

Even the Chancellor has admitted that taxes are going to rise, so it is essential that you make the most of any tax allowances that are available to you.

The government allows you put up to £7,200 each tax year into a Stocks & Shares ISA and, once invested in an ISA, the tax man has no future claim to any capital growth or income that you receive.

From 6th April 2010, the ISA allowance will rise to £10,200 (with up to £5,100 in a Cash ISA). For the over-50s, the change applies from 6th October 2009, meaning that if you are over 50 you can invest an additional £3,000 in the 2009/10 tax year.

If you prefer, you can invest up to £3,600 in a Cash ISA and then also invest in a Stocks & Shares ISA providing your total ISA investment for the tax year does not exceed £7,200.

Cash ISAs are just like a deposit account. Your capital is guaranteed and additionally the interest is tax free.

Stocks and Shares ISAs allow you to take higher risks. Stock market investments can fall in value as well as rise, so you could get back less than you invest. However over the longer term funds and shares have the potential to produce significantly higher returns.

What rate can you expect from a Cash ISA?

How does a Stocks & Shares ISA differ?

Within a Stocks & Shares ISA with Hargreaves Lansdown you can invest in any combination of:

• Funds - almost any fund open to private investors (our clients currently hold over 2,000 different funds between them)
• Shares traded on the London Stock Exchange; the DOW 30; Nasdaq 100; S&P 500; European top 300 shares
• Corporate Bonds
• Government Gilts
• Investment Trusts
• Exchange Traded Funds

You can open your ISA with cash and then make an investment when an opportunity arises. Holding cash is also useful if you want to sell an investment and hold the proceeds as cash before making another investment.

Why should you invest in a Stocks & Shares ISA with Hargreaves Lansdown?

• Low costs & the best fund discounts - with no dealing charge on funds
• Manage your account online - with our award winning website
• The widest investment choice - no other provider gives you more choice than the Vantage Stocks & Shares ISA
• You can mix and match different investments - you are not restricted to one fund management company
• Free investment research and investment ideas - sent to you by post but also available online
• No call centres or automated answering systems - just friendly, knowledgeable people that you can speak to if you need to
• We will even pay you an annual loyalty bonus for keeping your investments with us!

Plus you can transfer all of your existing investments to your Hargreaves Lansdown account and manage them online through our easy to use website. Now, more than ever, it is essential to help you maintain a balanced portfolio and allow you to switch between different investments (or even cash) as the market moves.

Investment ideas for your ISA

Artemis Income
01 Feb 2010
Invests across all areas of the UK market, plus up to 20% overseas, aiming to provide both long-term capital growth and a rising income.

Ignis Argonaut European Income
01 Feb 2010
A focused portfolio of high-yielding European shares, aiming to produce a high income and some capital growth over the long term.

Newton Higher Income
01 Feb 2010
Adopts a traditional equity income approach, aiming to provide a high and rising income over the long-term from a portfolio of UK companies.

Old Mutual UK Dynamic Equity
01 Feb 2010
Some companies are capable of growth despite the poor economic backdrop. Old Mutual’s team are amongst the best in the business at identifying them.

Open an ISA now

You can open a Stocks & Shares ISA online and invest a lump sum or set up a regular savings plan. Your application will take less than 5 minutes.

Transfer an existing ISA

You can also transfer existing ISAs (including Cash ISAs) to Hargreaves Lansdown and benefit from having all of your investments in one place.