ISAs

From July 2014, Individual Savings Accounts (New ISAs) are available to all UK residents over 18 years of age (16 years of age for Cash ISAs). They benefit all taxpayers, as any income or capital gains received from investments held within an ISA do not have to be declared for tax purposes.

ISAs can invest in cash or in stocks and shares (including unit trusts, investment trusts, Open Ended Investment Companies, Exchange Traded Funds, Corporate and Government Bonds and Individual Stocks and Shares).

The annual allowance is currently £20,000 (2017/2018 tax year). The allowance can be split between Cash and Stocks and Shares will also be changed so that the full amount can be invested in any combination of the two. Under current plans from 6^th April 2017 the annual contribution level will be increased to £20,000, which will also include the new Lifetime ISA allowance of £4,000.

Stocks and Shares ISA – allows you to invest in a variety of ways, whether directly with one company or by making use of a funds supermarket that allows you to invest in a variety of investment houses and investment funds, and offering the opportunity to switch funds as and when required.

Cash ISAs - widely available with different interest rates. It is a good idea to shop around for the best Cash ISA rates. It is important however to understand the conditions attached to those rates, for instance access may be restricted in order to achieve that particular rate.

Junior ISA - is a tax-efficient children's savings account. There's no personal income or capital gains tax to pay on the growth in the account value. Junior ISAs replaced the Child Trust Fund (CTF), but there is no government payment into Junior ISAs. The current limit (2017/2018 Tax Year) is £4,080 and similar to a conventional ISA the monies can be split between a Cash JISA and a Stocks & Shares JISA

THE VALUE OF INVESTMENTS AND INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.