Why I’m considering these UK shares for my Stocks and Shares ISA

first_imgSimply click below to discover how you can take advantage of this. Rupert Hargreaves | Tuesday, 26th January, 2021 Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Airbnb, Inc., Compass Group, and InterContinental Hotels Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Image source: Getty Images Based on my personal financial situation, I think a Stocks and Shares ISA is one of the best ways to own UK shares. These products may not be suitable for all investors. Stocks and Shares ISA benefits ISAs are very much like traditional share-dealing accounts, with a few key differences. Investors can only put £20,000 every tax year into one of these wrappers for a start. Any unused allowance cannot be carried over into different years. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…What’s more, money withdrawn during the year also counts as a deposit. So if I put £1,000 in at the beginning of the tax year in April, and then withdrew this money at the end of the month, I would only have £19,000 of my allowance remaining. This is the standard set-up. These limitations mean ISAs may not be suitable for every investor. However, some providers offer flexible Stocks and Shares ISAs. These products allow unlimited withdrawals and contributions as long as the total deposit for the tax year does not exceed £20,000. But the biggest benefit of these products, in my opinion, are the tax advantages. Any investments owned in an ISA wrapper do not attract income or capital gains taxes, at this point. That’s why I do most of my investing in ISA wrappers. The tax benefits are desirable. This is based on my own individual tax situation. Potential dividend and capital gains taxes on assets held outside of an ISA wrapper will vary from person-to-person. Beaten down UK shares I own a diversified basket of UK shares inside my Stocks and Shares ISA. And I have been considering buying some more to try and capitalise on the world’s recovery from the coronavirus crisis. I have been looking at two organisations, in particular, InterContinental Hotels Group and Compass Group. The pandemic has severely impacted these companies. The closure of hotels around the world has caused enormous disruption at InterContinental. Revenue per available room declined 53% year-on-year during the third quarter of 2020. Meanwhile, at the world’s largest catering group, Compass, operating profit declined a staggering 70% in its financial year ending September 30. However, despite these setbacks, I believe both of these firms are well-placed to stage a recovery when the world starts to move on from the pandemic. Both businesses are leaders in their respective fields. This has helped them raise money over the past 12 months to weather the storm. Size also usually comes with larger profit margins.Of course, there’s no guarantee either company will ever recover. Plenty of businesses have collapsed over the past 12 months. Just because InterContinental and Compass have managed to avoid disaster so far, doesn’t mean that they will continue to do so.They also face risks from technology upstarts, such as AirBnB and, in the case of Compass, smaller local competitors. These challenges may make it more difficult for the corporations to claw back pandemic losses.InterContinental and Compass may also face other challenges, such as higher wage bills, additional taxes and more regulation. However, I’m comfortable with the level of risk here. It’s clear to me that these businesses may never return to their former glory. That being said, as ways to play the economic recovery, I think they may be good investments. Their strong brands should help them attract customers and stand out in a crowded field. They’re on my watchlist. Why I’m considering these UK shares for my Stocks and Shares ISAcenter_img FREE REPORT: Why this £5 stock could be set to surge Get the full details on this £5 stock now – while your report is free. Enter Your Email Address Are you on the lookout for UK growth stocks?If so, get this FREE no-strings report now.While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.And the performance of this company really is stunning.In 2019, it returned £150million to shareholders through buybacks and dividends.We believe its financial position is about as solid as anything we’ve seen.Since 2016, annual revenues increased 31%In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259Operating cash flow is up 47%. (Even its operating margins are rising every year!)Quite simply, we believe it’s a fantastic Foolish growth pick.What’s more, it deserves your attention today.So please don’t wait another moment. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Rupert Hargreaveslast_img read more