I’ve written how I think it’s unfair that you have double the tax free allowance for a Stocks & Shares ISA than the Cash ISA limit. However given the more generous tax breaks available for a Shares ISA it’s worth looking at this option, if you are willing to take the risk of a stock market investment in the hope of a higher return than you’d get from on a Cash ISA savings account.

You need to do some research into which is most appropriate Stocks and Shares ISA for you. UK tracker funds are popular, as you spread your risk between major companies listed on the FTSE. However there are plenty of other options, such as gilts and bonds, actively managed funds or self invest ISAs (where you do the share trading yourself within an ISA tax shelter).

You can either go for a fund aimed to provide growth or regular income. You’ll also need to check out the annual charges levied on the ISA, as these charges are going to eat into your profit.

I’m sticking with the safety of Cash ISAs for the moment, I feel I already have enough exposure to the stock market through my stakeholder pension.

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