Individual Savings Accounts (ISAs)ISAs remain a tax efficient means of saving, whether via a regular monthly contribution or an annual lump sum. The overall personal limit for an ISA for 2013/14 is £11,520. If you are only investing in a cash ISA, the limit is £5,760, i.e. half the total allowance. Remember:
- If you don’t use your ISA allowance for this tax year then it is lost – it can’t be ‘carried forward’ to the next tax year.
- You pay no tax on capital gains within an ISA nor on any income generated by it.
- You don’t need to declare your ISAs on your tax return, making this simpler to complete.
- If you don’t have the full amount to invest straight away you could instead make regular monthly savings into an ISA.