The Stocks and Shares ISA has proven to be an immensely popular vehicle for buying UK shares. With investment returns immune to the tax man’s clutches, British investors can grow their wealth much faster. And reaching millionaire status using this type of trading account is not unheard of.
But with the April deadline fast approaching, what are the best UK shares for me to buy in my ISA right now? Let’s explore.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
Profiting with pizza
Domino’s Pizza Group (LSE:DOM) has been on quite a run. Since the start of 2019, shares are up over 50%, thanks to impressive growth in pizza sales. The pandemic certainly helped in that regard. But the momentum has since continued.
And now that management has resolved its long-standing franchisee conflict, growth might be about to accelerate even faster. Or at least, that’s the impression I got when the firm announced its £1.9bn sales target versus £1.5bn today.
A good chunk of this growth can be attributed to the continued digital transformation of the group. But of course, that does create a potential vulnerability. Suppose a successful cyber attack takes its systems offline, even for a short time? In that case, it could lead to a substantial loss of orders to competitors. Nonetheless, with its shares falling by 20% since the start of 2022, courtesy of market volatility, the UK business looks like a bargain buy for my portfolio.
UK shares fuelling the renewable energy era
With global warming becoming an ever more present threat, the world has begun making the necessary shift towards renewables. But to achieve this ambitious transition, a lot of raw materials are going to be needed, especially essentials such as battery metals including cobalt and vanadium.
This has created quite the tailwind for UK mining shares. And while there are plenty to choose from, my personal favourite is Anglo Pacific Group (LSE:APF). The royalties business provides the funding for larger mining firms to establish drilling sites in exchange for a portion of the extracted materials.
This approach has proven to be significantly more profitable, with operating margins currently standing at over 45%. It’s obviously still susceptible to the risks of fluctuating commodity prices. However, with a diversified portfolio consisting of essential renewable energy metals, I think the stock could be perfectly positioned to deliver long-term growth potential to shareholders. Even more so when considering it’s still trading at a 20% discount to pre-pandemic levels despite superior financial performance.
The small-cap behind modern technology
With the world’s dependence on technology growing even bigger, XP Power (LSE:XPP) is currently enjoying a pretty massive tailwind. The group is a designer and manufacturer of electronic components for equipment used throughout the industrial engineering, healthcare, and semiconductor industries.
The latter is particularly exciting as supply chain disruptions are currently driving substantial investments into this space. That’s obviously a highly lucrative opportunity and has so far resulted in a 46% jump in its semiconductor division revenue last year.
However, it’s not without its flaws. With 80% of revenue originating from its factories in China and Vietnam, the UK shares have recently been under a lot of pandemic related pressure in that region of the world. But while this problem may continue to plague the business in 2022, it’s ultimately a short-term issue. That’s why the stock’s recent 32% tumble since the start of the year looks like an excellent buying opportunity for my portfolio today.