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Revisiting ISAs

Three months down, nine months to go. At the
time of writing we’ve just completed the first quarter of the
2021/22 tax year so we thought it might be appropriate to take a
quick look at ISAs (Individual Savings Accounts).

Seen as a tax-efficient form of investing, statistics released by HMRC in
June 2021 reveal that some thirteen million ISAs were opened in the
tax year 2019/20, with cash ISAs accounting for 75% of the total. In
the same tax year the number of Junior ISAs topped the one million
mark for the first time.

ISAs are subject to strict investment limits. Adults can invest £20,000
in the current tax year, whilst the Junior ISA limit is £9,000. For
adults, investments can be spread across the four current ISA types
of Cash ISA, Stocks & Shares ISA, Innovative Finance ISA, and
Lifetime ISA. This last ISA type is confined to 18-39 year olds who
are looking either to save for their first property or towards
retirement. It also has a maximum investment amount of £4,000 per
year, and is subject to strict rules on withdrawals. Those who opened
a Help to Buy ISA before November 30 2019 can also continue to save
into their Help to Buy ISA until the end of November 2029.

If you are looking for advice on investments, or if your situation has
changed and you may therefore need to review your existing pensions
or investments, contact Beckworth by using one of the links on our
website.