From April 2017 there will be a total of six ISAs available in the “ISA family”, but which one is for you? Below is a list of each of the ISAs available please speak to an independent financial adviser before deciding which option to take.
Cash ISA – best suited for short term cash needs aimed at those aged 16 and above. Maximum of £15,240 in 2016/17 and £20,000 in 2017/18
Stocks and shares ISA – best suited to those investing for retirement aimed at those aged over 18. Maximum of £15,240 in 2016/17 and £20,000 in 2017/18
Junior ISA – under 18s only suitable for building up savings for a child, saving for university costs, house deposits, first car etc. Can convert into an adult ISA and can accept transfers from Child Trust Funds.
Innovative Finance ISA – suitable for income seekers willing to take risks, aimed at those aged 18 and above. Maximum of £15,240 in 2016/17 and £20,000 in 2017/18.
Help to Buy ISA – specifically for first time buyers looking to build up a deposit for a home and regular cash savers aged over 18. Maximum of £1,200 in first month and £200 month thereafter up to £12,000.
Lifetime ISA – for investors looking to save for the purchase of a first home or save for retirement. Withdrawals are tax free like other ISAs if used to purchase a first property or after the age of 60 otherwise there is a tax charge at 25%. Aimed at people aged 18 to 50, you have to be under 40 to open the account initially. This product will be new to the market from April 2017 and has a maximum limit of £4,000 (£5,000) including Government top up). Falls within overall £20,000 ISA limit for 2017/18.If you would like to discuss ISAs please contact your usual ABG contact who would be happy to assist you and where necessary recommend a qualified IFA. Arram Berlyn Gardner is not authorised under the Financial Services and Markets Act 2000 but are able in certain circumstances to offer a limited range of investment services to clients because we are members of the Institute of Chartered Accountants in England and Wales. We can provide these investment services if they are an incidental part of the professional services we have been engaged to provide.