Individual Savings Account (ISA)

An Individual Savings Account (ISA) is a type of savings or investment account. Currently, Investors are allowed to shelter £20,000 pa into an ISA investment.


An Individual Savings Account (ISA) is a type of savings or investment account. ISAs began on 6 April 1999 and will be around for the foreseeable future. Up to £20,000 can be saved tax efficiently each tax year. A tax year runs from 6th April to 5th April in the following year.

ISAs have been around since 1999, and if we include their predecessor the Personal Equity Plan (PEP) then individual investors could have invested a little over £300,000, since 1987, when PEPs began.

A couple therefore, could have invested a little over £600,000, and indeed we have many married couples at Rosan Helmsley with sums above £1.6m in their ISA accounts.

These are therefore highly tax efficient investments, as they allow individuals to avoid any capital gains tax on the growth made, and indeed there is no income tax payable on income withdrawn from ISAs.

Given current equity income yields of between 3% – 4%, a couple with a £1.6m accumulated ISA fund could therefore be drawing over £60,000 pa as an income from their ISA investments, tax free. It is clear therefore that ISAs therefore can form a very substantial additional retirement planning pool.

ISAs are now relatively complex, with five different ISAs available, and we therefore update a quarterly Key Guide to these investments.

Most of Rosan Helmsley’s clients now hold their ISA portfolios on one of the U.K.s large financial supermarkets. Holding investments in this way allows significant administration benefit, but also the ability to switch between typically 2,500 funds + on ISA platforms without fees applying.

Inevitably, investor’s preferences and circumstances change over time, and therefore the ability to switch investments around on a cost free basis offers a significant advantage.

In addition, Rosan Helmsley have negotiated extremely preferential terms on one of the largest platform providers in the U.K. and we would be happy to discuss consolidating your existing ISAs on to this platform, where investors can benefit from these preferential charging rates.

Please contact us if you would like to discuss investing in ISAs.

Making The Most Of ISAs

Making The Most Of ISAs 23