New ISAs

The new ISA allowance - Use it or Lose it

It is very rare that the Government provides something which shelters your money from tax – but an Individual Savings Account (ISA) is one of those investments. Introduced in 1999, it has now become the primary savings vehicle in the UK with more than 17 million people – about one in every three adults – now owning one.

From 1 July 2014 cash ISA's and Stocks and Shares ISA's have been merged into a single ISA. The limit for 2017/18 is £20,000. For Junior ISA's the limit is £4,128.

Once invested, you have no further liability for Income or Capital Gains Tax on any income or profits you receive – indeed, you do not even have to tell the taxman. There are many different ISA investment options available – from cash and other low risk investments, property, equities and even overseas companies – so you can be confident that, whatever your aims and objectives, there is a suitable home for your money. You pay no Capital Gains Tax and no further tax on the income. You can invest for income or growth and withdraw your tax-free savings whenever you need. The new rules simply mean that you can now shelter more of your assets from tax than ever before.

The current state of the public finances means tax rises are inevitable, initially for the very wealthy but then for almost everyone else. ISAs shelter your capital from tax.

It seems unlikely that the Bank of England will want to risk stalling any economic recovery by raising interest rates in the near future. Investors currently holding cash may wish to consider the possibility of higher taxes and negligible returns – but there is an alternative.

This information is designed for private investors who are happy to make their own investment decisions. Please note: - No investment advice is provided unless you contact us for a full financial review.

Opening your ISA couldn’t be easier. Simply contact us and we'll guide you through the process, explain all the products available and help you fill out the application forms.

If you require more information please contact us on 01271 321444 or email us: enquiries@lynfs.co.uk

Please remember that all stock market investments can fall as well as rise, so they should be held for the long term, but you could get back less than you invest. Also, past performance is not an indication of future performance. Tax rules can change and the value of tax shelters will depend on your personal circumstances. This article does not constitute personal advice. If you are unsure about the suitability of an investment, please contact us for advice.

It isn’t often that the Government helps put money in your pocket, so we would suggest that you act now to take full advantage of this tax break. If you have any questions please don’t hesitate to call us on 01271 321444. We look forward to being of assistance.

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