ISAs remain one of the most tax efficient solutions for your savings, with the overall limit increased to £20,000. This can be invested in either Cash, Stocks and Shares, or a mixture of both.

It is possible to transfer new and previous years’ ISA investments from Stocks and Shares into Cash, and vice versa.

What is an ISA?

ISAs offer an attractive tax-efficient investment to anyone aged 18 or over (16 or over for cash ISAs).

Tax must be paid on the income and profits made from investments in the stock market, either directly or through unit trusts and OEICs.

ISAs, however, serve as a kind of ‘wrapper’ to protect savings from tax. This allows individuals to invest in a range of tax efficient savings and investments, and pay no personal tax at all on the income and/or profits received.

Help to buy ISAs

A new ISA for first time buyers will offer a Government bonus when investors age 16 or above use their savings to purchase their first home. For every £200 a first time buyer saves, there will be a £50 bonus payment up to a maximum of £3000 on £12000 savings. The bonus will be available on purchases of homes up to £450,000 in London and up to £250,000 elsewhere.

The bonus will only apply for home purchase. Savers will have access to their own money and will be able to withdraw funds from their account if they need to for any other purpose.

Junior ISAs

Junior ISAs are now also available as both stocks and shares Junior ISAs and cash Junior ISAs, the current contribution limit for these is £4128 per annum, Your child can have a Junior ISA if they:

  • are under 18
  • live in the UK
  • were not entitled to a Child Trust Fund (CTF) account