Individual savings accounts (ISA’s) are a way of investing tax efficiently and should definitely be considered.
These can be used to save cash or invest in stocks and shares. Each taxpayer has an annual allowance of £20,000 which they can pay into a stocks and shares ISA, a cash ISA or a combination of both.
No income tax is due on interest or dividends received and any profit from investments within the ISA is free of capital gains tax.
Family members can put up to £9,000 into a junior ISA on behalf of children. Once the child reaches 18, the account matures and rolls into an adult ISA and they can access the money.
Finally, another ISA to consider is the lifetime ISA, designed for first time homebuyers or to save for the future. You must be between the ages of 18 and 40. This works as a long-term tax-free saving account into which up to £4,000 a year can be saved (until you reach age 50), topped up with a government bonus of 25% (up to £1,000).
If you would like more information regarding ISA’s, please do get in touch with Megan Hall
Private client and personal tax 
Trusts, IHT and estate planning 
