ISA’S

What is an ISA?

ISA stands for Individual Savings Account, and was introduced to encourage people to save more by offering tax free income. Each tax year, you are given an ISA allowance, giving a tax-free maximum you can save for the financial year. The allowance for an ISA currently stands at £20,000 (correct as of Feb 2020).

CASH ISA

Available for anyone over the age of 16 this is the most straightforward ISA. The cash ISA is a tax-free savings account. You can choose to deposit a single lump sum, ad hoc payments or regular payments.

STOCKS AND SHARES ISA

Available for anyone over the age of 18 the Stocks and Shares ISA is a tax efficient way of acquiring stock market investments. Seen as a medium to long term investment your money can be invested in shares in public companies (equities), government bonds or investment funds.

Innovative finance isa

An IFISA give you the option to utilise some or all of your £20,000 annual ISA allowance to earn tax-free interest returns on money you lend through FCA regulated peer-to-peer providers helping people and/or businesses. 

junior isa

A JISA is designed for children under 16 years of age. The annual allowance is currently £4,260 (correct as of Feb 2020). A JISA is managed by the parent however is in the child’s name. The child then takes control of the account when they are 16 and can only withdraw at the age of 18.