You can save tax-free with Individual Savings Accounts (ISAs).

 

In the 2015 to 2016 tax year, the maximum you can save in ISAs is£15,240.

 

There are 2 types of ISA:

 

• cash ISAs

• stocks and shares ISAs

 

You can put money into one cash ISA and one stocks and shares ISA each tax year.

 

Who can open an ISA

 

You m ust be:

 

• 16 or over for a cash ISA

• 18 or over for a stocks and shares ISA

• resident in the UK

• a Crown servant (eg diplomatic or overseas civil service) or their spouse or civil partner if you don’t live in the UK

 

You can’t hold an ISA with or on behalf of someone else but you can get a Junior ISA for children under 18.

 

There are 2 types of Individual Savings Accounts (ISA):

 

• cash ISA - you don’t pay tax on saving accounts interest

• stocks and shares ISA - you don’t pay tax on any income or capital gains you’ve made on your investments

 

If you complete a tax return, you don’t need to declare any ISA interest or profits on it.

 

Putting money into an ISA

 

You can put money into one cash ISA and one stocks and shares ISA each tax year. The tax year runs from 6 April to 5 April.

You can save up to £15,240 in one type of account or split the allowance across both types.

 

Example - You can save £10,240 in a cash ISA and £5,000 in a stocks and sharesISA in a tax year.

 

Your ISAs won’t close when the tax year finishes. You’ll keep your savings on a tax-free basis for as long as you keep the money in your ISA accounts.

 

What you can include in your ISAs

 

Cash ISAs can include:

 

• savings in bank and building society accounts

• some National Savings and Investments products

 

Stocks and shares ISAs can include:

 

• shares in companies

• unit trusts and investment funds

• corporate bonds

• government bonds

 

Withdrawing your money

 

You can take your money out of an Individual Savings Account (ISA) at any time, without losing any tax benefits.

 

Check the terms of your ISA for rules and charges around withdrawing money.

 

However, taking money out of your account doesn’t reset your tax-free ISAallowance. If you save up to your entire ISA allowance then withdraw some money, you can’t put anything else back into your ISA in that tax year.

 

Example - The ISA allowance for the 2015 to 2016 tax year is £15,240.

If you have £10,240 in a cash ISA and you withdraw £1,000, you can only put in another £5,000 this tax year.

 

You can’t transfer any non-ISA shares you already own into an ISA unless they’re from an employee share scheme.

 

Given the huge range of investment opportunities now available with ISA's & NISA's there has never been a better time to consult an independent financial adviser to discuss your options. 

 

If you would like to arrange an initial meeting with us at your convenience and at our cost to discuss how we may be able to elp please contact us.