Individual Savings Accounts (ISAs) form an important core of most investment portfolios, offering valuable tax advantages and an investment allowance that rises each year in line with inflation.
Since being introduced in 1999, ISAs have proved one of the most popular and tax-efficient ways to save and invest for the future. In his March 2014 Budget, the Chancellor sprung a welcome surprise when he announced sweeping changes to ISA regulations, designed to encourage people to save more by offering bigger tax breaks and greater flexibility.
The ISA allowance for 2016/17 remains at £15,240, and the changes from July 2014 now allow full flexibility in the use of cash and investments within the overall annual limit. Over £250 billion is deposited in Cash ISAs1, yet the average account is paying interest of just 0.55%.2
We draw on the expertise of some of the world’s top investment professionals to manage our ISA funds. We match the risks you are prepared to take with a well-diversified and balanced portfolio to create an appropriate strategy for income or capital growth. Through regular reviews we adjust the mix to reflect changing needs and markets.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested. An investment in a Stocks and Shares ISA does not provide the security capital associated with a deposit account or an investment in a Cash ISA.
The favourable tax treatment given to ISAs may not be maintained in the future as they are subject to changes in legislation.
Request contact from a St. James's Place Partner to find out more.
1 HMRC, August 2016
2 Bank of England, August 2016