Confident ISA investors already planning for next year
As the end of the tax year beckons, confident ISA investors are already planning ahead, with 71% preparing to take full advantage of the increased ISA allowance in the 2010/2011 tax year.
According to research from Barclays Stockbrokers, the UK's largest execution-only online stockbroker, 81% plan to invest in equities within their ISA in the next tax year. A third of investors (34%) plan to invest in funds and one in five (21%) plan to invest in Exchange Traded Funds (ETFs)
Amongst the survey of Barclays Stockbrokers clients, 59% of investors will be taking advantage of the increased ISA allowance in order to protect more assets from tax. And as the low interest environment continues, nearly a third (29%) will be investing the new allowance to seek better returns than those currently achievable on cash.
For those who are still looking to invest this year's ISA allowance, Barclays Stockbrokers will be accepting paper ISA applications until Saturday 3rd April, telephone applications will be accepted up to 17:00 on Monday 5th April and online applications will be accepted up to 20:00 on Monday 5th April.
Barbara-Ann King, Head of Investments at Barclays Stockbrokers says: "With the end of the tax year imminent, it is encouraging to see over two thirds (71%) of our ISA clients are already planning ahead to the next tax year and looking to take advantage of the increased ISA limits available to all. In this low interest rate environment, investors also need to develop diversified portfolios to stand the best chance of obtaining the returns they seek. Our clients are responding effectively to the challenges of rapidly changing markets by branching out from the traditional shares, gilts and bonds, and utilising investment instruments such as Exchange Traded Funds. A fifth of our ISA investors plan to invest in ETFs with in their ISA in the next tax year, as they provide instant diversification and low cost access to markets and indices, including many emerging markets.
"For those ISA investors who prefer to invest a lump sum at the last minute, Barclays Stockbrokers is committed to making sure investors can utilise their full tax allowance as easily and efficiently as possible. Applicants can open ISA accounts and subscribe to existing accounts, online until 20:00 on Monday 5th April."
"In the current tax year, with the Barclays Stockbrokers Investment ISA you can invest up to £7,200 a year or up to £10,200 if you are 50 or over, and the portfolio will be free from Capital Gains Tax on any growth, and Income Tax on dividends.
"With an Investment ISA, an investor is in complete control of their investments and can choose from Barclays Stockbrokers' extensive range of products which allow the client to structure a portfolio which meets their investment objectives and risk profile. As well as stocks & shares and gilts & bonds, investors could consider Exchange Traded Funds (ETFs), funds, Structured Products, Exchange Traded Commodities (ETCs) and Real Estate Investment Trusts (REITs).