All about ISAs

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All about ISAs

In the 2019/20 tax year, you can save up to £20,000 tax-free in an Individual Savings Account (ISA), and when it comes to your ISA investment, you have a number of options.

Investors comfortabe with the slighly higher risk Peer to Peer lending can also now invest in an Innocative Finance ISA, and those aged 18-40 can open a Lifetime ISA.

Although you can’t hold an ISA for anyone else, parents or guardians can open a Junior ISA and manage the account; but the money belongs to the child.

Put simply, an ISA is a tax wrapper for your money. There are two main types avaliable depending on the level of risk you’re prepared to take: 

– Cash ISA

– Stocks and Shares ISA

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen. An ISA is a medium to long term investment, which aims to increase the value of the money you invest for growth or income or both. The value of your investments and any income from them can fall as well as rise. You may not get back the amount you invested.