Investing in ISAs
What is an ISA?
Individual Savings Accounts (ISAs) are a tax efficient way of investing, helping you minimise the tax you pay on your savings.
Types of ISA
There are two types of ISA – Cash ISA and a Stocks and Shares ISA.
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Cash ISAs keep investment risk to a minimum and have an annual allowance of £5,340 for adults. The annual junior ISA limit is £3,600.
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Stocks and Shares ISAs are more risky than Cash ISAs, but have a potential for better returns. You can invest up to £10,680 this tax year.
We will help you place your investments into an ISA to protect them from the taxman. Any investment growth, no matter how much, is then free from income and capital gains tax.
Benefits of an ISA
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No income tax to pay – particularly valuable if you’re a higher-rate taxpayer
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No capital gains tax to pay – regardless of how much your investment grows over time
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Receive a tax-efficient income – the income generated on bond funds in an ISA would be free of income tax
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Simplify your tax returns – you don’t have to mention ISAs on your tax return
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No fixed investment term – although ISAs should be considered as long-term savings
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An annual benefit – each year you can shelter £10,680 from the taxman
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Double your allowance – you and your spouse can each invest £10,680 in an ISA and keep even more of your savings away from the taxman
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Flexible allowance – each year you can invest your ISA allowance in cash or stocks and shares, or a combination of both
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Easy access – you can access your money at any time without any penalties but its worth remembering that once your ISA is cashed in the allowance for that year is lost forever
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Investment flexibility – you can invest your ISA in most available funds, with varying levels of risk in regions all over the world
