2 ISA shares to consider for big income!

An Individual Savings Account (ISA) can significantly increase an investor’s returns over time.

Brits can buy a wide range of shares, trusts and funds in one or both of the Stocks and Shares ISA and Lifetime ISA. Unlike a General Investment Account (or GIA), one does not have to pay a penny of tax on capital gains or dividend income with an ISA.

Over time, this could add up to tens of thousands of pounds in savings. Also, people have more money to use to charge their portfolio with the miracle of compounding returns.

Please note that tax treatment depends on the individual circumstances of each client and may change in the future. The content of this article is provided for informational purposes only. It is not intended to be, and does not constitute, any form of tax advice. Students are responsible for conducting their own due diligence and obtaining professional advice before making any investment decisions.

With this in mind, here are two high yield stocks that I think deserve a lot of attention today. When buying through an ISA, one will not have to worry about dividend tax. This kicks in a profit of over £500.

PRS REIT

Real estate investment trusts (REITs) are stocks designed to provide investors with substantial income.

These businesses receive tax benefits of their own (such as corporate tax exemptions). In return, they must pay a minimum of 90% of the profit from their rental activities in the form of benefits.

Residential property specialist PRS REIT (LSE:PRSR) is a top prospect to consider right now. By focusing on the most stable real estate sector, it receives stable income streams in all areas of the economic cycle, as well as decent dividend payouts.

This is not the only reason why I like it. Britain’s housing downturn means that private employment continues to rise at an alarming rate, giving trust salaries a huge boost.

The latest data from the Office for National Statistics (ONS) showed private house rents rose by 8.4% in the 12 months to September.

Recent price gains mean PRS REIT’s yield has fallen to 3.9%. Its shares have risen on hopes that interest rates will gradually fall, raising net asset values ​​(NAVs) and reducing borrowing costs.

Naturally, the PRS could slide if the Bank of England does not meet market expectations. But in comparison, I think it’s an attractive dividend stock to consider today.

Please note that tax treatment depends on the individual circumstances of each client and may change in the future. The content of this article is provided for informational purposes only. It is not intended to be, and does not constitute, any form of tax advice.

Assura

Assura (LSE:AGR) is another REIT with unique defensive features. As an owner and operator of primary health care facilities, rent collection remains strong in all areas of the economic cycle.

This is not all. Its rental contracts are linked to inflation, which provides protection against rising costs. And trust tenants are tied to very long contracts. The average estimated lease term here is 26 years.

My main concern here is future changes in NHS policy which could impact on income. But right now the health strategy remains in the company’s favour, as high hospital waiting lists squeeze investment in basic healthcare assets such as GP surgeries.

I think Assura has huge growth potential, too, as the UK’s aging population drives demand for healthcare provision.

With its 8.5% forward dividend yield, I think it’s another high income stock to consider.