ISAs – bigger and better than ever

One of the highlights of the 2017/18 tax year was the increase to the annual ISA limit. While pension allowances have continued to shrink in the last few years, the annual ISA allowance has gradually leapt from £7,000 in 1999 to a whopping £20,000 – that’s £40,000 per couple. Unlike pensions, there is no limit to how much money you can hold in an ISA either. ISAs have many other benefits that make them a really useful and important investment account for people of all ages. Read on to find out more.

The advantages of ISAs

  • ISAs have great tax benefits. The interest you make on cash savings or the gains from investments within an ISA are free from Income Tax and Capital Gains Tax
  • You have easy and immediate access to your money. This is particularly useful if you are under the age of 55 and cannot access your pension
  • Unlike a pension, there is no limit to how much you can hold within an ISA

ISA growth in action

The best way to see the benefit of ISAs is to look at how much money you could have made if you’d invested the full allowance every year since ISAs were first made available in April 1999. Over 18 years you would have invested a total of £186,560 tax-free, and this would have grown by £191,954.54 to give you a total of £288,505.54 (assuming 5% annual growth)*.

You could have £288,000 if you’d invested the full ISA allowance each year and achieved 5% annual growth.

Why choose Bestinvest for your stocks and shares ISA?

  • Multi-awarding winning service – we were voted Best Stocks & Shares ISA Provider at the Shares Awards 2017
  • Freedom to invest as you want, whether you choose your own investments or let the experts do it for you with one of our Ready-made portfolios
  • Great value for money with tiered service fees of 0.4% or less a year, no set-up fees and share dealing for just £7.50 per trade
  • Don’t worry if you don’t have any new cash to invest. Our ISA is an excellent home for any old ISAs you already have. It’s easy to transfer existing ISAs and we even pay up to £500 towards any exit fees your existing providers may charge**
Open an ISA

Here to help

If you would like any further information or have any questions, our knowledgeable team are here to help. Call us on 020 7189 2400 or email best@bestinvest.co.uk.

Important information

*This figure is based on an investment return of 5% per annum, exclusive of any fees (which may vary from provider to provider), compounded annually. This level of return is not guaranteed. You should note that investments can go down as well as up and it is possible to get back less than you originally invested. The way in which tax charges and tax relief are applied depends on individual circumstances and may be subject to change in the future.

**Exit fees may apply if you leave Bestinvest.

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