Helping you to save & invest

ISAs: Individual Savings Accounts

Save up to £20,000 tax-efficiently per tax year with your annual ISA allowance

As one of the most tax-efficient ways to save and invest for your future, an Individual Savings Accounts or ISAs can be a great alternative to traditional savings accounts. When investing within an ISA, there is no further tax to pay on any capital gains, interest or dividends earned on the assets held within your investment, and they do not use any of your capital gains, savings or dividend allowances. Further to this, when you come to draw from your ISA, the amount you draw is completely tax-free, and so you do not have to report any income drawn from your ISA on your annual tax return.

How much can I save tax-efficiently?

If you live in the UK and are over 18 years old for a Stocks & Shares ISA, or 16 for a Cash ISA, you have access to an annual ISA allowance of £20,000 in the 2020/21 tax year. Your allowance can be split between multiple types of ISAs, and if you maximise your allowance each year you can accumulate large sums in a tax-efficient account. A common misconception of ISAs is that you need to hold the account for a set period of time to achieve the tax-free benefits, but the majority of ISA providers give you access to your money should you need to withdraw funds.

Why use Investment ISAs for saving?

Whilst Cash ISAs offer limited, fixed returns on your capital, Investment or Stocks & Shares ISAs are commonly used as part of a long-term savings strategy to grow your money year-on-year through tax-free compound growth. Stocks & Shares ISAs allow you to invest up to £20,000 per tax year in stocks and shares, giving you the potential to increase the value of your investments further than a Cash ISA. This means that you may receive back less than you have put into your ISA as the markets rise and fall, but investing could also provide you with higher returns in the long-run.

Want to find out more?

At Smith Eliot, we can help find the right ISA for your financial goals and risk appetite, with access to a wide range of solutions that are built and managed around what you want to achieve. If you’d like to find out more about opening an ISA, get in touch to discuss the options available to you with the Smith Eliot team today.


The value of an ISA with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than you invested. An investment in a Stocks and Shares ISA will not provide the same security of capital associated with a Cash ISA. 

The favourable tax treatment of ISAs may not be maintained in the future and is subject to changes in legislation.

Stocks & Shares ISA

Stocks & Shares ISAs offer an opportunity to grow your wealth by investing in a diversified range of assets including shares, bonds, alternatives and property. You can save up to £20,000, the current ISA allowance, in the 2020/21 tax year without paying interest, dividends or capital gains tax within your ISA.

Junior ISA

Junior ISAs allow you to give your children a head-start in life by saving and investing for them in a tax-efficient manner. For all children under 18 in the UK who do not have a Child Trust Fund, JISAs enable you to invest up to £9,000 in the 2020/21 tax year without paying any tax on the growth within the ISA.

Start your savings journey today with Smith Eliot

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