Why you should consider ISAs

Fact Sheet: ISAs

Have you used your ISA allowance for the current tax year? You could save up to the limit tax-free!


Individual Savings Accounts (ISAs) are wrappers within which a wide range of savings and investment products can be held, free of UK income and capital gains tax.

How do ISAs work?

ISAs serve as a ‘wrapper’ to fully protect savings from tax, allowing individuals to invest monies up to the maximum
limits each year in a range of savings and investments and pay no personal tax at all on the income and/or profits received.

The main ISA benefits are:

  • no personal tax (income or capital gains) on any investments held within an ISA;
  • income and gains from ISAs need not be included in tax returns; and
  • freely withdraw money from your ISA without losing.

 The five types of ISA

  • Stocks and Shares
  • Cash
  • Innovative Finance (IF-ISA)
  • Lifetime ISA (LISA) 
  • Junior ISA (JISA)

 Utilise your allowance

All your Annual Allowance can be invested in either stocks & shares, cash, innovative finance ISAs or lifetime ISAs.

Alternatively, you can split it between more than one type, up to the overall annual limit of £20,000, with either the same or a different provider. However, the maximum annual amount you can save in a lifetime ISA is £4,000.

You will also be able to transfer money saved in previous years’ cash ISA holdings to stocks & shares ISAs and vice versa without affecting your current year’s annual allowance. Innovative Finance ISAs cannot be transferred to other ISA wrappers, however it is possible to transfer existing ISA funds into IF-ISA.

Contribution Limits

The current ISA overall maximum annual contribution limit is £20,000.


Any investment returns received from an ISA will be tax-free. There is no personal tax on any income taken and no capital gains tax on any gains made. The value of your ISAs will be included in your estate for Inheritance Tax purposes on your death (except ISAs invested in shares listed on alternative investment markets that may qualify for Business Relief).

For more information, read our fact sheet.

How can we help you?

ISAs are a tax-efficient way to manage your savings and are a strategy used in tax planning. If you need assistance with how to reduce the tax liability due on your assets, we can help.

If you would like to discuss ISAs and other tax efficient planning, or if you wish to arrange an initial no cost, no obligation, consultation, then please fill out the contact form below. Alternatively, you can call 01603 706 820 or email

Important information

This is solely for informational purposes and nothing in it is intended to constitute advice or a recommendation. You should not make any investment decisions based on this content.

The impact of taxation (and any tax relief) depends on individual circumstances. This has been prepared based on our current understanding of UK Law, Taxation and HMRC practice, all of which could be subject to change in future. 

The value of investments can fall as well as rise and it may not always be possible to receive back the sum initially invested. Past performance is not necessarily a guide to future investment returns.

While considerable care has been taken to ensure this information is accurate and up-to-date, no warranty is given as to its accuracy. This article constitutes a financial promotion.

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