There are many options available when it comes to investing your money.
You can keep your money in a savings account or put your money to work through an investment. investments are more risky as the value may go down but pick the right investment and the value could go up much faster than if you had left the money in a savings account.
When you sell an investment that has gone up in value it’s called ‘realising’ your capital gain.
In the UK everyone gets a capital gain allowance each April. The capital gains tax allowance in 2018-19 is £11,700, rising to £12,000 in 2019-20. This is the amount of profit you can make from an asset or investment in a tax year before any tax is payable. Of course if you invest in an ISA or a pension, any gain is always tax free.
New ISA Opportunities
Until recently ISAs had limited investment options but have grown considerably with the introduction of the Innovative Finance ISA in April 2016 which can hold new types of investments such as peer to peer lending loans and litigation funding investments.
The latter, available from Just is an investment that uses the money to fund legal cases against banks, corporations and professional advisors. The investment works through crowdfunding, with each investor receiving a proportion of the reimbursed legal costs awarded by the courts.
The structure of the investment is a bond that has the potential to return 8% a year over 3 to 5 years and, with the introduction of the innovative ISA, any gains can be realised tax-free without using the capitals gains allowance.
As with most investments there is no guarantee the investment will pay off but it does provide diversification for investors who might otherwise only hold stock market investments or worse, be sitting in cash which is losing value due to inflation.
For more information about this offering see https://justisa.co.uk/
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