Ethical ISAs

Once you've made up you're mind that you want to invest ethically then it's a question of how to do so profitably and economically.

One way open to everyone is to use their annual Individual Savings Accounts (ISA) tax-free allowance. Because they act as a tax protection for your investments, if you haven't used your annual allowance yet, this is an economical place to start.

Every year all UK residents over the age of 18 have an ISA limit.

See our Tax Guide

 

This can be invested in a mini ISA in the form of cash, stocks and shares and insurance products. Alternatively you can invest in a maxi ISA where these investment types are offered by a provider in one package. If you use a maxi ISA then you can invest your full allowance in stocks and shares.

The next step is to find a provider that offers ethical ISAs. There are about 15 of these and they include large insurance companies like Legal and General and AXA and fund managers like Jupiter and Aberdeen among others. See our Providers' Pages.

In selecting a fund it will be important to look at what the fund's investment criteria are, how it chooses its ethical investments and of course, how well it has performed over the last say five to ten years. The great thing about ISAs is that you get a new allowance every year and you are not committed to using the same provider each time.

ISAs are an excellent way to invest your money tax-free. For other ways to pay no tax on investments, see our section on www.Investments.co.uk/Investing_for Children/tax-free_savings plans

 

 

UK Investments - Financial, Property & Other Investments - 1998-2008

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