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We live in a world where the only true constant is change and no more so than in taxation. Your ISA allowance is one of the few constants you can get as an investor, so even in this currently benign tax environment, your ISA allowance should not be overlooked.

Having an ISA means you don’t have to pay income tax or capital gains on your returns and you don’t even have to declare ISA returns on your self-assessment form. This could make a significant difference to the value of your savings over the long term; particularly whilst preparing for, or taking income in retirement.

The current ISA rules are:

  • From 6th April 2019, an individual can invest up to £20,000 a year into an ISA.
  • There are five types of ISA available; cash ISAs, stocks and shares ISAs, innovative finance ISAs, Help to Buy ISAs and Lifetime ISAs.
  • You can transfer money saved in a cash ISA to a stocks and shares ISA and vice versa
  • The amount you can save is limited to £20,000 but can be split between the different types of ISAs.
  • Note – there are lower limits for Help to Buy ISAs and Lifetime ISAs.

We advise many individuals on how to develop an investment strategy which is tax efficient and makes the best use of all your investments including existing ISAs, shares, and pensions.

For example, you may have existing shareholdings which are not being actively managed which should be diversified and then sheltered in the ISA wrapper, so they grow free of tax in the future.

For more details, please contact us.