You can save tax-free with Individual Savings Accounts (ISAs).
In the 2018 to 2019 tax year, the maximum you can save in ISAs is £20,000.
Who can open an ISA?
You must be:
• 16 or over for a cash ISA
• 18 or over for a stocks and shares or innovative finance ISA
• 18 or over but under 40 for a Lifetime ISA
• resident in the UK
• a Crown servant (for example diplomatic or overseas civil service) or their spouse or civil partner if you do not live in the UK
You cannot hold an ISA with or on behalf of someone else.
You can get a Junior ISA for children under 18.
How ISAs work
There are 4 types of Individual Savings Accounts (ISA):
• cash ISA
• stocks and shares ISA
• innovative finance ISA
• Lifetime ISA
You do not pay tax on:
• interest on cash in an ISA
• income or capital gains from investments in an ISA
If you complete a tax return, you do not need to declare any ISA interest, income or capital gains on it.
Putting money into an ISA
Every tax year you can put money into one of each kind of ISA. The tax year runs from 6 April to 5 April.
You can save up to £20,000 in one type of account or split the allowance across some or all of the other types.
You can only pay £4,000 into your Lifetime ISA in a tax year.
Your ISAs will not 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
You cannot transfer any non-ISA shares you already own into an ISA unless they’re from an employee share scheme.
Innovative finance ISAs include:
• peer-to-peer loans – loans that you give to other people or businesses without using a bank
• ‘crowdfunding debentures’ – investing in a business by buying its debt
You cannot transfer any peer-to-peer loans you’ve already made or crowdfunding debentures you already hold into an innovative finance ISA.
Lifetime ISAs may include either:
stocks and shares
No matter what you are looking for our team are here to help and all you need to do is give us a call today on 01635 551926 to arrange your completely free consultation.
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