Did you know you have an annual allowance from the government that you can save in an Individual Savings Account?  Did you know that this also applies to children? 

For adults the ISA allowance for this tax year is a generous £20,000 and for children it is £4,260.  The catch is that if you don’t use this allowance by the end of the tax year, you lose it.  If you’ve already got money in ISAs this is treated separately, the £20,000 allowance is for new money that you can invest in ISAs.  

Talking of existing ISAs it is always worth taking a look ‘under the bonnet’ to make sure that they are still performing well for you.  If you talk to a financial adviser, this would also include looking at the accounts you have with banks or building societies.  We recommend to our clients that they assume nothing and regularly get us to review all their savings and investments. 

There are different types of ISAs: 

Cash

Stocks & Shares

Junior (for children)

Help to Buy (for saving for a home)

Lifetime 

The type of ISA you invest your allowance in will depend upon your personal goals and circumstances.  However each kind of ISA has a different purpose, for example a Cash ISA is a good place to save tax free if you might need to use the money in the short term.  A Stocks & Shares ISA is ideal for investing tax free for the longer term and if you are prepared to accept an element of risk. 

As with all aspects of financial planning, we strongly suggest that you get professional advice from a qualified and experienced financial adviser.  We would love to talk to you. 

The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested.

Investors do not pay any personal tax on income or gains, but ISAs do pay unrecoverable tax on income from stocks and shares received by the ISA managers.

At Four Oaks Financial Services, our initial consultation is at our cost and our advisers are fully qualified to give advice on ISAs.  Our Lichfield Financial Advisers will be delighted to discuss estate planning with you as part of a lifestyle financial plan.  Contact our Client Liaison Team on 01543 401029) for more information or to make an appointment.