The ISA (individual savings account) will have been around for 20 years in the 2018/2019 tax year, and the deadline for using up your ISA allowance for the 2017/2018 tax year is fast approaching.
Cash & Investment ISAs remain extremely popular with investors despite the advent of high interest current accounts and other savings products.
The advantage of investing within an ISA is that any gains in the value of the investments held within the wrapper are tax free. The Cash ISAs attractiveness in particular has been reduced due to the introduction of the personal savings allowance, but ISAs retain their utility for investors in other ways.
According to HMRC, 11.1 million standard adult ISA accounts were taken out in 2016/2017, holding cash of £585 billion.
This money is often left in accounts that do not offer a high rate of interest, meaning that investors are missing out by not examining the market in search of the product that is right for them.
Keep in mind that your annual allowance of £20,000 will be reset on the 6th of April whether you have used it or not. Generally, there will be some administration lead time in order to contribute, so don't leave it to the last minute!
Westminster Wealth Management can assist in helping you to navigate your financial future, and expert advice is valuable in complicated times just as much as in simple ones. Contact us today.
The value of investments and income from them may go down as well as up and you may not get back the original amount invested.
Information is based on our current understanding of taxation legislation and regulations which is subject to change.
Still time to max out this year’s Isa allowance