It’s nearing the end of the month and that means one thing for a lot of people – payday. In our first ever #FinanceFriday, our financial experts at WBW Chartered Financial Planners give you their top five facts about ISAs:

  • Tax-efficient: Individual Savings Accounts (ISAs) are tax-efficient savings vehicles that allow you to save and invest without having to pay income tax or capital gains tax. They can be a good way for people to start saving or to add to their existing portfolio of savings and investments.
  • £20,000: The ISA allowance for the 2021/22 tax year is £20,000. Even if you can’t afford to take advantage of the full annual ISA allowance, it is still worth putting away what you can via a regular savings plan, which can start from as little as £50 a month.
  • Flexible: You can allocate your entire ISA allowance across cash, stocks and shares, or any combination of the two. You can also transfer your ISAs between providers whenever you wish, subject to your providers’ rules.
  • Over £550 billion in ISAs: the total market value of adult ISA holdings was around £584 billion at the end of the 2018/19 tax year, according to HM Revenue & Customs. Around 11.2 million individuals subscribed a total of £67.5 billion to adult ISAs in that tax year.
  • Use it or lose it: above all, don’t forget one of the golden rules of ISA investing – if you don’t use it, you’ll lose it. You only get one ISA allowance for every tax year, so try to make the very most of your annual allowance if you can.  Please note that levels and bases of, and reliefs from, taxation are subject to change.

For further information, or to arrange an appointment, please contact WBW Chartered Financial Planners by telephone on 01626 242500 or email enquiries@wbwcfp.co.uk.