INVESTMENT
INDIVIDUAL SAVINGS ACCOUNTS (ISAs)
Securing your financial future is more crucial than ever in today’s rapidly changing economic landscape. With many saving and investment options, making the right choice can feel overwhelming. Among these, Individual Savings Accounts (ISAs) have emerged as a fundamental tool for achieving both short-term savings goals and long-term financial growth. At Roxburgh Financial Services, we are committed to providing independent financial advice and helping our clients understand and leverage ISAs to their fullest potential.
More flexible approach to using your ISA allowance
Since 6 April 2024, savers and investors have had a more flexible approach to using their ISA allowance. For the first time, individuals can open multiple accounts of the same type of ISA within a single tax year, from 6 April one year to 5 April the next, provided they do not exceed the annual ISA limit. This marks a departure from previous rules, which annually restricted savers to one account per ISA type.
An ISA is not merely a savings account; it's a tax-efficient shelter designed to help you grow your wealth. Each type caters to different financial needs and risk appetites, offering unique advantages.
CASH ISAs
Cash ISAs are similar to traditional savings accounts, but interest earned is not subject to tax. This can make them appropriate for conservative savers looking for a secure place to stash their cash.
STOCKS & SHARES ISAs
Stocks & Shares ISAs invest in the stock market, providing the potential for higher returns compared to cash savings. While they carry more risk, the tax-efficient wrapper means you won’t pay capital gains tax or tax on dividend income, making them an attractive option for long-term investors.
INNOVATIVE FINANCE ISAs (IFISA)
Innovative Finance ISAs (IFISA) allow individuals to use peer-to-peer lending platforms within a tax-free wrapper. This can offer higher returns than traditional savings accounts, albeit with a higher risk level.
LIFETIME ISAs (LISA)
Lifetime ISAs (LISA) are designed to help people save for their first home or retirement. They offer a government bonus of 25% on contributions, up to a maximum bonus of £1,000 per year, substantially boosting your savings efforts. You must be 18 or over but under 40 to open a Lifetime ISA in the 2024/25 tax year. You can put in up to £4,000 annually until you’re 50. You must make your first payment into your ISA before you’re 40.
Each tax year, you have an ISA allowance that sets the maximum amount you can contribute across all your ISAs. Maximising this allowance is essential to benefit from the tax efficiencies ISAs fully offer.
ISAs THAT ALIGN WITH YOUR FINANCIAL OBJECTIVES
At Roxburgh Financial Services, we understand that everyone’s financial situation and goals are unique. Our approach is to provide personalised independent advice, helping you choose the suitable ISA or combination of ISAs that align with your financial objectives. Whether you’re saving for a significant purchase, investing for your future, or planning for retirement, we’re here to guide you every step of the way.
While ISAs offer opportunities for savers and investors, navigating the options and strategies can be complex. Factors such as your financial goals, risk tolerance, and the economic environment are critical in deciding which ISA is right for you. This is where professional independent financial advice becomes invaluable.
ISAs represent a cornerstone of personal finance in the UK, offering a flexible and tax-efficient way to save and invest. By understanding the different types of ISAs and utilising your annual allowance wisely, you can build a robust financial foundation for your future.
Are you ready to unlock your financial potential and create a prosperous future?
At Roxburgh Financial Services, we’re committed to empowering our clients with the knowledge and tools they need to navigate their financial journeys confidently. Let’s unlock your financial potential and create a prosperous future together.