ISAs have undergone a lot of change since they were introduced in 1999, but for investors they still offer a key tax advantage. You don’t have to pay UK income or capital gains tax on investments in an ISA.
As the UK stock market powered to fresh highs in May, many investors went looking for bargains, snapping up some stocks which have lost significant ground since the start of the year.
Among the most popular UK buys during the late spring shopping spree were National Grid, easyJet, Premier Inn owner Whitbread and investment manager M&G.
There’s hope that fortunes will turn for these companies and some of the headwinds which have been swirling will decline. Although remember, past performance isn’t a guide to future returns.
The past few months have seen investor optimism in the UK start to make a comeback for the first time in over two years. And for good reason.
The UK’s home to some world-class companies, providing goods and services around the world.
It’s a leading market for income with investors expecting to take home nearly £90bn in dividends this year alone. Remember, dividends are variable and not guaranteed.
It’s important to invest across different countries, as well as industries and companies, to make sure you have a diversified portfolio.
But we think there could be growth opportunities for investors who want some exposure to the UK stock market.
A Stocks and Shares ISA allows you to invest up to £20,000 free from UK income and capital gains tax.
This article has been written independently of our investment research team to offer some inspiration but isn't personal advice or a guide on how or where to invest.
You should choose investments based on your own objectives and attitude to risk. If you're not sure whether an investment is right for you, ask for financial advice. All investments fall as well as rise in value, so you could get back less than you invest. Remember, tax and ISA rules can change, and any benefits depend on your personal circumstances.
Where did HL’s ISA clients invest in the UK in May 2024?
The list below shows the most bought UK shares by number of trades (minus any sales) by HL’s Stocks and Shares ISA investors in May 2024.
Most bought shares May 2024 (number of buys, minus sales):
Information correct at 31 May 2024.
An HL director holds shares in easyJet plc.
How to pick UK investments for an ISA
Investing in an individual company isn’t right for everyone because if that company fails, you could lose your whole investment. If you cannot afford this, investing in a single company might not be right for you. You should make sure you understand the companies you’re investing in and their specific risks and be investing for the long term (five years or more).
If you're looking for inspiration from our investment research team, take a look at their selection of five UK shares they believe have long-term potential.
Whether you’re looking to invest in funds, shares or ETFs, discover the UK investment ideas our experts believe have the most long-term potential.
Already invested in the UK?
You can make the most of the investment opportunity the UK currently offers, but it’s vital to invest across different countries, as well as industries and companies. This can help you reap the benefits of diversification.
If you don't feel comfortable building and maintaining a portfolio, take a look at our ready-made portfolios. These all-in-one portfolio funds let you choose how much risk you’re willing to take. HL’s investment experts will make the day-to-day investment decisions from there.
All you'll need to do is review your investments every now and then to make sure they still meet your needs and objectives.
HL’s fund ranges are managed by our sister company Hargreaves Lansdown Fund Managers Ltd.