Tax-efficient investment wrapper holding a range of investments
Individual Savings Accounts (ISAs) have been around since 1999 and are tax-efficient investment wrappers in which you can hold a range of investments, including bonds, equities, property shares, multi-asset funds and even cash, giving you control over where your money is invested.

ISAs are a highly tax-efficient way to save or invest your money because you don’t pay Income Tax on your interest or Capital Gains Tax on any profits.

Tax year 2016/17 ISA allowance
Between 6 April 2016 and 5 April 2017, you have an ISA allowance of £15,240. The rules now mean you can split the ISA allowance as you wish between a Stocks & Shares ISA and a Cash ISA.

You don’t have to declare any investments held in ISAs on your tax return. This may not seem like much, but if you have to file an annual tax return you’ll know that any way of simplifying your financial administration can be very helpful.

ISAs are becoming an important part of financial planning, and they offer a unique range of benefits. These include the following:

• No income is tax payable on interest payments which are made by bond funds
• No higher-rate tax is payable on dividends which are paid by equity funds (you can’t claim back the 10% dividend tax paid by the fund in
an ISA)
• You can access your money whenever you need to, but it cannot be returned (if you withdraw your ISA, you will
automatically lose all of its associated tax benefits – unless you need to
liquidate your cash, you should transfer it between providers to retain its tax- efficient status)
• Income from an ISA doesn’t affect your personal allowance or
age-related allowance
• No Capital Gains Tax is payable on any growth you may achieve, so you could use withdrawals to increase your income when necessary (any losses made in the ISA cannot be used to offset gains made elsewhere)

It is important to remember that an ISA is just a way of sheltering your money from tax – it’s not an investment in its own right.

Transferring your investment between providers
If you want to change your existing ISA provider or are looking to consolidate your investments under one roof, with an ISA you can transfer your investment between providers to suit your individual needs. However, your current provider may apply a charge when you transfer your investment. While your investment is being transferred, it will be out of the market for a short period of time and will not lose or gain in value. Its important if you wish to do this and are not sure what steps you need to take in order to consolidate all your investments together that you seek independent financial advice, this way your adviser will be able to answer any questions but also determine for you whether this would actually be a good move for you to make or not , depending upon your personal circumstances and how quick you may need to access the monies.

Control over your retirement income
ISAs can give you control over your retirement income, as you can take as much money out as you require whenever you want. Savings in an ISA and withdrawals from an ISA are tax-efficient, but if you withdraw money and put it back later it will count towards your ISA annual subscription limit in the year that you re-invested your money, this is something that not everyone is always aware of.

Junior ISAs – a straightforward way to save for a child’s future
Junior ISAs offer investors a straightforward way to save for a child’s future and offer similar tax advantages to ‘adult’ ISAs, but with a lock-in, making the child’s investment inaccessible until they turn 18. Like an ISA, Junior ISAs can invest in bonds, equities, cash, property and even multi-asset funds, giving you even more flexibility over the future of your child’s long-term savings.

Since April 2015, it is possible for existing Child Trust Funds (CTFs) to be transferred into Junior ISA accounts. You can invest up to £4,080 in the current tax year and switch from a Cash Junior ISA to a Stocks & Shares Junior ISA and back again.