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ISA vs Sipp: which should you pick?

Hints for making the most of significant breaks before the end of the tax year
ISA vs Sipp: which should you pick?
  • How to save thousands in taxes by using your Isa and pension allowance
  • Why tax relief can help boost your portfolio performance

There is one answer to investment’s biggest tax question: should I use a Sipp or an Isa? Both. Taking advantage of the full allowance means most people can shelter a maximum of £60,000 of annual savings from capital gains and income tax (£20,000 in your Isa and up to £40,000 in your Sipp). The money in your Sipp also enjoys tax relief at the rate you pay income tax – for now.

And when you invest that money in the stock market, the benefits quickly mount up. An investor who uses their full Sipp and Isa allowance can save many thousands of pounds in tax bills over the years compared with one saving the same amount outside of the tax wrappers 

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