Anyone, who is an income tax payer and has some money to save or invest, should know about Individual Savings Accounts (ISAs). ISAs are wrappers within which a wide range of savings and investment products can be held, free of UK income and capital gains tax by anyone aged 18 or over (16 or over for cash ISAs).
ISAs serve as a ‘wrapper’ to fully protect savings from tax, allowing individuals to invest monies up to maximum limits each tax year the benefits of saving your money in an ISA are that: there is no personal tax (income or capital gains) to pay on any investments held within an ISA. Income and gains from ISAs do not need to be included in tax returns and money can be withdrawn from an ISA at any time without losing the tax breaks.
There are several different types of ISA including Stocks & shares that come in the form of either individual shares or bonds, or pooled investments such as open-ended investment funds, investment trusts or life assurance investments. Lifetime ISA (LISA) for those aged between 18 and 40 designed to help younger people save up for their first home or retirement. There are also Help to Buy ISAs aimed at helping first time buyers to save for their mortgage deposit these are only available until 30th November 2019 at the moment.
All of your annual allowance can be invested in either stocks & shares, cash, innovative finance ISAs or lifetime ISAs, or 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 £4000. To help you make the most of your ISA allowance gives us a ring and come and talks through your savings options with Enable’s experienced IFAs.
Issued by: Enable Independent Financial Life Planners • 25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 – Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE