Your annual ISA allowance remains one of the simplest, most flexible and popular ways to invest for your future and shelter money from Income Tax and Capital Gains Tax. In the video below, Lauren Smith, Investment Analyst, discusses the different types of ISAs available.
The value of an investment with St. James's Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
The favourable tax treatment given to ISAs may not be maintained in the future, as they are subject to changes in legislation.
What is an ISA
Why choose a Stocks & Shares ISA?
Holding wealth in cash is the right thing to do if it’s money you might need in the short term. And it’s entirely understandable that savers look to cash for security when markets are volatile. The problem comes when cash becomes a long-term investment. If the returns on your cash aren’t keeping up with inflation, then your spending power is reducing.
In 2017/18, 10.8 million adult ISA accounts were subscribed to. Whilst the number of Cash ISA subscriptions fell by 697,000, the number subscribing to Stocks & Shares ISAs rose by 246,000¹; which suggests that more savers are realising their ISA allowance could be working harder for them to create tax-efficient capital growth and income for the future.
The maximum you can save into an ISA in this tax year is £20,000, but any unused allowance is lost after 5 April. It’s a valuable opportunity to grow your wealth and protect it from the twin threats of taxation and inflation. But to make the most of it, you need to invest it wisely. Find out how much your ISA could be worth.
¹ HMRC, ‘Individual Savings Accounts (ISA) statistics’, April 2019