The ISA was introduced 20 years ago in April 1999 and, in that time, £8.74trn has been placed in the savings vehicle, while an estimated £30bn has been saved in income tax.¹
ISAs tend to be a favourite for the vast majority of investors– particularly higher rate taxpayers and those who are hoping to build large cash balances. In fact according to a major building society survey, more than half of savers (53%) are still intending to rely on ISAs to protect interest on their “nest egg” from the tax man. The national survey also found that most consumers (66%) would choose an ISA over other savings products because they are aware their interest will be tax-free.²
Successive Governments have implemented different measures to incentivise saving - the fact that savings accounts with tax-free status have been around for nearly 30 years acknowledges the importance of this type of product and its value to consumers.
And with that in mind, the end of the tax year is only just over two months away and you should therefore make the most of your allowance. In the current tax year, 2018 / 2019, the maximum amount you can deposit in an ISA in one financial year is £20,000 per annum. This allowance will remain unchanged in the next tax year, 2019 / 2020.
For further information about ISAs, please check our 5 Minute Guide to ISAs .
Or contact your Brunsdon Financial Adviser now for further information, help and advice.
Please note that this information is for guidance only and does not constitute personal advice. Any information provided in this article regarding tax treatment or legislation is based on our understanding of current UK legislation law, tax law and HM Revenue and Customs practice (January 2019), all of which may be subject to change and your individual circumstances may impact on these. The FCA does not regulate tax advice.
Brunsdon is not responsible for the content of third party web sites.