Individual Savings Accounts (ISAs) offer a tax-efficient way to save and invest, available to all UK residents and certain Crown servants. With options to invest in cash, equities, bonds, and collectives, ISAs are versatile and accessible, requiring no minimum period of investment. For the 2023/24 tax year, you can contribute up to £20,000 across cash and stocks & shares ISAs. Whether you're a higher-rate taxpayer looking to maximise gains or a new investor seeking a low-entry investment vehicle, our expert advisers work with clients in Beverley, Hull, and the surrounding areas, and will guide you through the ISA landscape.
ISAs represent a tax-efficient container in which to place cash savings and investments in equities, bonds and collectives.
An ISA is available to all UK resident individuals and to Crown servants (for example, those in the UK’s armed forces, diplomatic service or overseas civil service) and their spouses or civil partners who are not resident in the UK.
To open an ISA:
Frozen ISA Allowances for the 2024/2025 tax year
Flexibility to pay into the same type of ISA with different providers
Allowing partial transfers between providers
No need to reapply for existing ISAs each year
New 18+ age limit for all adult ISAs
Designed to encourage new saving they are attractive to investors seeking a tax-efficient investment vehicle with the potential for higher returns. There is usually a low level of minimum subscription and no minimum period of investment.
An ISA enables you to accumulate savings in a tax efficient manner as all gains in the hands of investors are free from tax, making them particularly attractive to higher rate taxpayers.
An ISA can contain cash deposits, investments in equities, bonds and collectives.
For the 2024/25 tax year, you can choose to pay in one of the following:
You can only open one cash ISA and one stocks and shares ISA to put new money into each tax year. But you can also open other ISAs to transfer old ISAs into.
Withdrawals from an ISA can be made at any time with all gains free from tax but it is only possible to hold one ISA per tax year, so if an ISA is closed within the same tax year that it was opened, another one cannot be started until the next tax year.
ISAs can be transferred from one provider to another, as long as the new provider accepts transfers. This is often done with a cash ISA after it has been held for a year as previously attractive interest rates drop dramatically when short-term bonuses and fixed terms come to an end. The transfer is initiated through the new, receiving, provider who will require you to supply details of the original account and will manage the whole transfer process. Transfers should not be done manually by withdrawing the investment, closing the account, and re-investing it in the new account, as this removes the tax-free interest status of your investment.
The current year's allowance is unaffected by anything transferred from previous years so you can transfer previous investment to a new ISA and open a second ISA for new contributions if you wish, as long as you don't contribute to both.
For tailored advice on ISAs and other investment options, we're here to help. Serving clients in Beverley, Hull and the surrounding areas. Contact us today!