Your current location:
Making Sense of ISAs With Police Mutual
If you’d rather not share the returns from your investments with the taxman then you need to make the most of your ISA allowance. This tax year you can invest up to £7000 without paying tax on any growth you achieve - that means no Income Tax and no Capital Gains Tax on your returns - although the tax treatment of ISAs may change in the future.
If you haven’t used any of your current ISA allowance, you can invest a maximum amount of £7000 in a Stocks and Shares ISA with Police Mutual before 6 April. And, if you already have a Cash ISA, you can still invest up to £4000 in a Stocks and Shares ISA through Police Mutual.
But you need to act now. Your ISA allowance applies to each individual tax year and you can’t carry it over from one year to the next. On 5 April 2008 your allowance for this tax year will run out.
Welcome change
ISAs were first introduced in 1999 to help encourage more people to save by offering generous tax incentives and over 17 million people have chosen to invest through an ISA since they were launched.
The Government has announced some important changes for the 2008/09 tax year to make ISAs more accessible and attractive.
• Increased limits - you will be able invest up to £7200 through ISAs each tax year
• Simple structure - why not consider investing up to your full allowance in a Stocks and Shares ISA with Police Mutual or you can invest up to £3600 in a Cash ISA and the remainder in a Stocks and Shares ISA
• Transfer cash sums from existing Cash ISAs to a Stocks and Shares ISA - if you’ve built up a lump sum in a Cash ISA in a previous tax year you can now transfer it into a Stocks and Shares ISA without affecting your ISA allowance for the current tax year
• Personal Equity Plans (PEPS) - will be classed as Stocks and Shares ISAs
Investment ISAs made easy with Police Mutual
Police Mutual can help you to access a wide range of investments without you having to become a financial expert yourself. Whether you want to invest a regular amount each month, a lump sum or both, you can benefit from their expertise and value for money.
When you choose Police Mutual, your money will be invested in the PMIS MultiManager Growth Fund which is managed by experienced investment specialists; it’s their job to constantly review where your money is invested and how it’s performing to help make sure that it is in the right places, at the right times, to achieve the best possible results.
The benefits of a Stocks and Shares ISA
The Growth Fund gives you access to the potentially higher returns of stock market based investments but also includes an element of more secure investments. Within this fund 75% of your money is invested in shares which offer the potential for growth but naturally have a higher level of risk associated with them. The remaining 25% is invested in a range of lower risk investments such as bonds and cash which help to reduce the level of overall risk on your investment.
You can choose to invest a lump sum or make regular monthly payments from £50 per month. With the ability to stop and restart, increase or decrease your payments this is a flexible way of investing and with no fixed term you can always access your money.
The Growth Fund is one of five available MultiManager funds. It’s important to be comfortable with the level of risk you are willing to take for the potentially higher returns because, as with all stock market based investments, there are no guarantees, the value of your plan can go up and down and you may get back less than you have paid in. To give your money the opportunity to benefit from potential growth you should consider investing for at least five years.
Police Mutual is an organisation you can trust and has helped to provide the Police Service and their families with value for money products and peace of mind for over 80 years and has over 180,000 members nationwide.
Police Mutual can help you to set up your Stocks and Shares ISA over the phone. Call 0800 652 8981
