<\/p>\n
UK residents aged 16 or over can save up to \u00a320,000 a year (for the 2019\/20 tax year) into a Cash ISA. Those aged 18 or over can save in a Cash or Stocks & Shares ISA, or combination of ISAs.<\/p>\n
Tax-efficient wrapper<\/strong> Also, don\u2019t forget that any unused ISA allowance can\u2019t be rolled over into a subsequent tax year, so if you don\u2019t use it, you\u2019ve lost it forever. Even though you\u2019ll receive a new allowance for the next tax year, you are not permitted to contribute anything towards a previous ISA.<\/p>\n Types of ISA options<\/strong> Key elements <\/strong> If you are not sure what to invest in, you could temporarily hold your annual ISA allowance in cash in the short term and invest thereafter. However, cash is not good for the long term because inflation has the potential to erode its value.<\/p>\n Transfer investments<\/strong> INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM, TAXATION ARE SUBJECT TO CHANGE.<\/p>\n THE TAX BENEFITS RELATING TO ISA INVESTMENTS MAY NOT BE MAINTAINED. PAST PERFORMANCE IS NOT A RELIABLE INDICATOR OF FUTURE PERFORMANCE.\t\t<\/p>\n","protected":false},"excerpt":{"rendered":" Time to explore your ISA options? An Individual Savings Account (ISA) enables you to save in a simple, tax-efficient way, while generally giving you instant access to your money. This gives you short, medium and long-term saving options, and with the end of the current tax year not too far away, it\u2019s important to make… Read more »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/harbourfinancial.co.uk\/news\/wp-json\/wp\/v2\/posts\/2926"}],"collection":[{"href":"https:\/\/harbourfinancial.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/harbourfinancial.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/harbourfinancial.co.uk\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/harbourfinancial.co.uk\/news\/wp-json\/wp\/v2\/comments?post=2926"}],"version-history":[{"count":0,"href":"https:\/\/harbourfinancial.co.uk\/news\/wp-json\/wp\/v2\/posts\/2926\/revisions"}],"wp:attachment":[{"href":"https:\/\/harbourfinancial.co.uk\/news\/wp-json\/wp\/v2\/media?parent=2926"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/harbourfinancial.co.uk\/news\/wp-json\/wp\/v2\/categories?post=2926"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/harbourfinancial.co.uk\/news\/wp-json\/wp\/v2\/tags?post=2926"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nISAs are a very tax-efficient wrapper in which you can buy, hold and sell investments. For any ISA contributions to count for the current tax year, you must save or invest by 5 April.<\/p>\n
\n\u2022 Cash ISAs \u2013 these are savings accounts that are tax-free, with the maximum allowable contribution set at \u00a320,000 in the current tax year
\n\u2022 Junior ISAs \u2013 these are tax-free savings accounts in which under-18s can save or invest maximum contributions up to \u00a34,368 in the current tax year
\n\u2022 Stocks & Shares ISAs \u2013 these are investments that are classed as tax-efficient, with the maximum allowable contribution set at \u00a320,000 in the current tax year
\n\u2022 Innovative Finance ISAs \u2013 these are peer- to-peer lending investments that are classed as tax-efficient, with the maximum allowable contribution set at \u00a320,000 in the current tax year. However, they are considered high risk, and it may not be possible to get your money out quickly. Some may not be protected by the Financial Services Compensation Scheme
\n\u2022 Lifetime ISAs \u2013 these can be either classed as savings (tax-free) or investments (tax-efficient). You must be aged between 18 to 39, and the maximum allowable contribution is set at \u00a34,000 in the current tax year
\n\u2022 Help to Buy: ISAs \u2013 these were set up to help those saving for their first home and were only available to new savers until 30 November 2019. Existing savers can continue saving, although they must claim their government bonus by 1 December 2030.<\/p>\n
\nGoals, time horizon, risk and diversification are key elements to consider when saving and investing. You could put all the \u00a320,000 into a Cash ISA, or invest it in a Stocks & Shares ISA or an Innovative Finance ISA. Alternatively, you could split your allowance between Cash ISAs, Stocks & Shares ISAs, Lifetime ISAs or Innovative Finance ISAs, depending on your specific situation and requirements.<\/p>\n
\nIf you don\u2019t have \u00a320,000 in new money to invest, you could transfer investments outside a tax-efficient wrapper into an ISA.
\nISAs can also be passed on death to a surviving spouse or registered civil partner. The surviving spouse is entitled to an additional, one-off ISA allowance, equal to the value of the deceased\u2019s ISA holdings. This enables the surviving spouse to effectively re-shelter assets which were in a spouse\u2019s ISA into an ISA in their own name.<\/p>\n
\nTHE VALUE OF INVESTMENTS AND INCOME FROM THEM MAY GO DOWN. YOU MAY NOT GET BACK THE ORIGINAL AMOUNT INVESTED.<\/p>\n