What is an ISA?
An ISA is an Individual Savings Account, with INDIVIDUAL being the key word, i.e., a couple each have their own allowance. Think of it as storing your money in a safe on

which any interest, dividends or growth are tax-free so you don’t need to let HMRC know the code.
Any UK resident over 16 years of age can open a Cash ISA. From the age of 18 UK residents can also open Stocks and Shares, Lifetime and Innovative Finance ISAs.
Each tax year there is a maximum amount that can be paid into an ISA, this is known as the ISA allowance. The current (2021/22) allowance is £20,000 per year (Junior ISAs £9,000 per year). Payments can be made a one-off lump sum or a series of contributions over the year.
Existing ISAs can be transferred from one type to another and to different providers. The transferring of an ISA does not count as using up part of your annual ISA allowance, so your full allowance is still available.
Managing Risk in Stocks and Shares ISA
Risk is a key part of investing and therefore the management of the risks involved is a

fundamental part of the advice process. Our use of risk profiling techniques helps us determine together the correct level of investment risk for you by identifying the risk required to meet your investment objectives and your attitude to risk. Aligning your risk profile with suitable risk rated funds, helps us ensure the level of risk you’re exposed to remains suitable to your goals and circumstances.
Types of ISA available and key features?
There is an ISA out there for everyone, the key features list and table below could help you identify which type could benefit you:
Type | Allowance (21/22) | Who can open? | Tax feature? | Great for? |
---|---|---|---|---|
Cash | £20,000* | UK resident – over 18 | Tax free interest | Day to day savings, emergency funds |
Stocks and Shares | £20,000* | UK resident – over 18 | Tax free interest, gains & dividends | Medium to long term investment |
Lifetime Cash ISA | £4,000** | UK resident – 18 to 40 years old | 25% gov top up, Tax free interest | First time property purchase or later life |
Lifetime Stocks & Shares ISA | £4,000** | UK resident – 18 to 40 years old | 25% gov top up, Tax free interest, gains & dividends | First time property purchase or later life |
Innovative ISA | £20,000* | UK resident – over 18 | Tax free interest | Peer to peer lending |
Junior Cash ISA | £9,000 | Under 18 | Tax free interest | Savings account for under 18s |
Junior Stocks & Shares ISA | £9,000 | Under 18 | Tax free interest, gains & dividends | Investment account for under 18s |
*£20,000 is the total annual allowance not per ISA type
**£4,000 uses up part of the overall £20,000 annual allowance
Cash ISA
· Tax free
· Fixed and variable rates
· Low risk way to save
· Easy access to withdrawals when needed
· Great place to hold your emergency funds
· Level of return is limited due to low rates of interest
· Inflation rate, if higher than interest rate, would reduce the value of cash over time
Stocks and Shares ISA
· Tax free
· Freedom to invest in:
o Shares (equities)
o Funds
o ETFs (exchange Traded Funds)
o Investment Trusts
o Government bonds (gilts)
o Corporate bonds
· Investments can be tailored to your risk profile
· Access to withdrawals, although not necessarily immediate, if needed
· Great medium to long term investment
· Capital is at risk
Lifetime ISA
· Tax free
· Designed to help save for first home or later life
· Can be held in Cash or Stocks and Shares
· Annual government bonus of 25% (up to max £1,000 per year)
· Can be opened by those aged 18 – 39 years (contributions can be made to age 50)
· Rules on withdrawals (for use in first time home purchase or later life funding)
· Government withdrawal charge if withdrawn for other reasons
Innovative Finance ISA
· Tax free
· Allows you to lend funds directly to other investors through peer-to-peer market
· Offers higher interest rate returns though capital is at risk
Junior ISA
· Tax free
· Available to those under 18
· Belongs to the child regardless of who funds ISA
· Can be held in Cash or Stocks and Shares
· Can transfer in a Child Trust Fund
· Only the child can withdraw money from age 18
If you’d like more information on ISA’s or a review of your existing investments get in touch so we can build a plan together for your financial future.

Our services relate to certain investments whose prices are dependent on fluctuations in the financial markets beyond our control. Investments and the income from them may go down as well as up and you may get back less than the amount invested. Past performance cannot be used as a reliable prediction of future performance.
Your home may be repossessed if you do not keep up repayments on your mortgage.
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