Investment guide

Why should you invest early this tax year?

The value of investments can fall as well as rise, and you may not get back the full amount you invest. Eligibility criteria, fees and charges apply. Tax reliefs referred to are those applied under current UK legislation, which may change. The availability and value of any tax relief will depend on your individual circumstances. 


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They say the early bird catches the worm but can the same be said about when it comes to investing?

Investing could be a great way to put your money to work and give it the opportunity to grow towards your long-term goals. But there are ways that you could be investing smartly.

Each tax year, you have an ISA allowance that you could use to invest without paying UK capital gains or income tax on the money you make from it. That way you get to keep more of your money that could stay invested and build towards your money targets. 

Why should you invest early in the tax year?

A year might seem like a long time but putting off investing using your ISA allowance could impact how far your money could go in the future. 

  • Start early – By investing at the beginning of the tax year, you’ll ensure that any gains you make are free from UK capital gains or income tax from day one.
  • Monthly investing– If you’re likely to use some or all of your tax-free allowances this year, spreading them across over the 12 months means you could set achievable targets each month. 
  • Timing the market – If you’re trying to wait for a good opportunity to start investing this tax year, you could easily miss the boat if there are any sudden sharp rises. Markets move quickly and you might find yourself buying in when prices are higher. Instead we like to think it’s about ‘time in the market’ rather than ‘timing the market’. 

As the new tax year started on 6 April, your ISA allowance has reset for the 2024/25 tax year – so you could be ready to get started. 

Here’s what you could invest with:


1. Invest with a Stocks and Shares ISA

Invest up to £20,000 this tax year with a Stocks and Shares ISA, free from paying UK capital gains and income tax on any money you make from your investments. 


2.  Invest for your children with a Junior ISA

Similar to a Stocks and Shares ISA, you can invest up to £9,000 free from UK capital gains and income tax for your child. For Royal Bank Invest they must be under the age of 14 and can’t withdraw from their Junior ISA until they’re at least 18. 


3. Add to your Pension

If you’re thinking about retirement, a pension would put your money to work along with contributions from the government. The tax relief means that the government matches 25% of whatever you put into your personal pension up to £60,000 each tax year. You then can’t withdraw money from a pension until you’re 55 – although this is expected to increase to 57 from 2028.

Why invest with Royal Bank of Scotland?

Ready-made funds

Choose from five ready-made investment funds, from defensive to adventurous.

Expertly managed

Your money is looked after by a team of experienced investment managers at Coutts.


Low fees


We keep fees low so you keep more of any money you make.

The total cost is 0.62%, which is 62 pence for every £100 in your investment. 

24/7 online access

Keep track, add more money, and set up or change monthly payments whenever you like.

Learn more about investments

Whether you’re an experienced investor or just finding out what investing is, we’ve got a range of articles to help you understand more about investing.

We regularly update our articles depending on what’s happening in the market so check back for future updates.

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