ISAs, or Individual Savings Accounts, are tax efficient savings plans.
Types of ISA
Currently, the available types of ISA are:
- Cash ISA
- Stocks and shares ISA
- Innovative finance ISA
- Lifetime ISA
Benefits of an ISA
The big benefit of ISAs is that no tax is payable, either on interest from cash or on investment returns.
Everyone has a yearly allowance for how much they can pay into an ISA. Currently, this is £20,000 a year split across the different ISAs as you chose. The exemption is the Lifetime ISA, which has a £4,000 annual limit.
Examples of an ISA
A cash ISA can include:
- Bank and building society accounts
- Some National Savings & Investments products
A stocks and shares ISA can include:
- Shares in companies
- Unit trusts and investment funds
- Corporate bonds
- Government bonds
A lifetime ISA may include either:
- Stocks and shares
Innovative finance ISAs include:
- Peer to peer loans
- Crowdfunding debentures
As part of our ongoing advice service, we always look to manage your investments in the most tax efficient way possible. We will make use of your annual ISA allowance, if appropriate for your individual circumstances.
If you’re interested in an ISA, please get in touch with us.Contact Us