Have You Used Your ISA Allowance?

You can shield £15,000 a year from the taxman in an ISA - so why are so many investors failing to do so?

Emma Wall 22 January, 2015 | 4:55PM
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Have you taken advantage of your ISA allowance this year? Investors have less than three months to use the £15,000 allowance for the 2014/15 tax year – and for the first time you can opt to have the whole amount in investments or cash, or a blend of the two.

With such a sizable allowance available it comes as a surprise to learn that two thirds of savers have not taken advantage of their ISA allowance – and of the 31% that have, most have saved or invested just £1,000 or less.

The figures are revealed in a report by AXA, which reveals despite the favourable tax benefits associated with ISAs, many Britons are not engaging with the savings vehicles. Gains on investments held within an ISA wrapper are free from Capital Gains Tax, and dividends or coupons paid from stocks, funds or bonds held in an ISA wrapper are free from income tax.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Emma Wall  is former Senior International Editor for Morningstar