investment tax wrappersAs investors we constantly try to maximise our returns and by using the saltydog data we can hopefully identify the best funds to do that.  Whilst choosing the funds may be key to your performance, of almost equal importance is choosing the correct tax wrapper in which to hold those funds.

Whether it is ISAs, pensions, unit trusts or investment bonds, different wrappers will suit investors at different points in their life.  It is too big a subject to fully cover on this page but here are some of the key facts that you should consider when investing your money.

ISAs

Investments grow free of any type of tax and offer complete access to your money at any time. Any fund switches you make within the ISA are also free of any liability. The downside is that you are limited to a maximum investment each tax year of £11,280 (2012/12) so you should always ensure that you make full use of your allowances wherever possible.

Collectives (Unit Trusts/OEICS)

For those investors that have made full use of their ISA allowance this may well be the next choice an just like an ISA you have full access to your investment