A positive tax-free investment strategy for 2024

As the tax year approaches its end on 5 April 2024, investors who have not yet used their £20,000 tax-free ISA allowance for the year have a unique opportunity to make a meaningful impact on both the future of their finances and the planet.

By strategically investing in projects that qualify as an Innovative Finance ISA (IF ISA), investors can utilise their tax-free allowance to invest in renewable energy projects that not only target stable and attractive financial returns but will also contribute to the crucial global effort to combat climate change. Investments like these can be a game-changer for both investors and the planet.

Climate change is one of the most pressing issues of our time, and switching to renewable energy sources is a critical step towards mitigating its effects. Individuals can align their financial goals with a sustainable future by making investments that support the development of more renewable energy installations. These investments typically support projects such as solar panels for schools or community centres, which play a pivotal role in reducing carbon emissions and promoting cleaner, greener energy alternatives, especially for the next generation.

With the Ethex Ethical Innovative Finance ISA (IF ISA), you know the impact your investment is having because you invest directly into businesses with a clear social or environmental mission.   

It’s a great way to take advantage of your annual £20,000 tax-free* allowance while helping businesses make a positive impact, like generating renewable energy for schools, creating affordable homes or providing educational resources for future generations.

Renewable energy investments can deliver stable and long-term financial returns. The revenue generated from these investments often comes from contracts with customers who have signed a Power Purchase Agreement (PPA). This represents a commitment by the customer to buy electricity from the renewable energy generator for a typical period of at least twenty years, ensuring a steady income stream.

Beyond the potential for financial gains, investing in renewable energy projects allows individuals to make a positive impact on the environment and society as a whole. By supporting clean energy projects, investors play a vital role in reducing dependence on fossil fuels and combating climate change. The social benefits are equally significant, as renewable energy projects create jobs and contribute to the development of resilient, sustainable communities.

Starting the new year with a commitment to sustainable investing is a powerful way to align your values with your financial goals. Investing in renewable energy projects such as the Brighton and Hove Energy Services Co-operative (BHESCo) 5% bond offer gives you an opportunity to actively contribute to a cleaner, greener planet. 

So as the clock ticks down to the end of the tax year on 5 April 2024, you can realise your tax-free allowance and aim to make a positive impact on both your financial future and the planet. Starting the new year with a sustainable investment not only supports clean energy projects but also sets a powerful precedent for responsible and impactful investing.

*Tax-free status is individual and subject to changes in legislation. Please consult a tax professional if you are uncertain about your eligibility. ISA eligibility does not guarantee returns or protect you from losses.