At Prosperis, we have the combination of specialist advice and a distinctive approach to investment management that can help you make the most of your investment ISAs allowance.

Despite the investment uncertainties, your annual ISA allowance remains a valuable, tax-efficient element of any long term financial plan. The best way to think of an ISA is as a tax ‘wrapper’ – the wrapper protects your money and you are not charged tax on the interest you earn*, offering greater growth potential.

For each tax year, there is a limit to the amount you can invest in an ISA. For the 2017/18 tax year, the allowance is £20,000. You can have both a cash ISA or a Stocks & Shares ISA. The cash element in an ISA can be in the form of deposits/savings accounts with a bank, National Savings or a building society as well as other ‘cash based’ investments.

ISAs can be invested in ‘stocks & shares’ and this may include investments in unit trusts, open ended investment companies, investment trusts, ordinary shares, fixed interest preference shares, corporate bonds having at least five years to maturity, all FCA authorised retail investment schemes and UK Real Estate Investment Trusts, stakeholder medium term products and certain life insurance policies.

The ISA offers cash investors the same tax free conditions as a stocks& share investor in that there is no lock-in period. Withdrawals can be made at any time without losing tax relief attributed to the account.

The annual ISA allowance is for every eligible adult. This means a husband and wife, for example, could put up to £40,00 between them into ISA this tax year.

In the Autumn Statement 2014, the Chancellor announced an additional ISA allowance for spouses or civil partners when an ISA saver dies. Surviving spouses are now able to invest any inherited ISA funds into their own ISA, without breaching the annual allowance.

If you want further information about investment, withdrawals and re-investments in ISAs, one of our advisers will be happy to help.

You may pay into both a stocks & shares ISA and a cash ISA during the same tax year provided you do not exceed the annual limit on the accounts combined and do not exceed the limit on cash deposits.

What are the benefits of ISAs?

  • No tax on income from your ISA
  • No tax on capital gains arising on your ISA
  • No tax when the policy pays out

Who can have an ISA?

To open an ISA you have to be aged 18, or 16 for a Cash ISA. You must be a resident in the UK. You cannot hold an ISA jointly with, or on behalf of anyone else.

Cash ISAs

Cash ISAs allow you to save your money without paying any income tax on the interest you earn, making the interest you earn more valuable than a normal savings account. There are a number of cash ISAs, including fixed rates and instant access options.

Stocks & Shares ISAs

Stocks & shares ISAs offer a tax efficient way of investing. There are a wide range of stocks & share ISAs, also known as ‘investment ISAs’ on the market, so it is a good idea to shop around for the correct ISA that meets your needs.



The value of investments can fall as well as rise. You may get back less than you invested.

How can we help?

If you have any questions or would like to arrange a meeting to discuss your investments, please give us a call on 01423 223 640 or complete the online enquiry form and we will get back to you to discuss your requirements.

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