are a great way to save money and usually provide better interest rates to earn interest on your savings than other savings accounts available.
There are many confusions with ISA’s and how these effect personal tax. To put these misconceptions to sleep, ISA’s are exempt from Income Tax and Capital Gains Tax.
The overall annual ISA savings limit is currently (2020/21) £20,000. Investors can choose to invest in a cash ISA, stocks and shares ISA or an Innovative Finance ISA, if they don’t exceed the invest limit.
A Lifetime ISA is also available to adults who are under 40 years old. Individuals can contribute up to £4,000 per year and receive a 25% bonus from the government. If £4,000 is invested, the investment limit for the other types of ISAs falls to £16,000.
Funds, including the government bonus, can be used to buy a first home up to £450,000, at any time from 12 months after the first subscription or can be withdrawn from age sixty completely tax-free.
For more information, please visit https://www.gov.uk/individual-savings-accounts or contact us directly.