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Have you heard about the new ISA allowances for 2014/15

ISA and Junior ISA Allowances 2014/15

As clients who manage their own investments you may have made a New Year's resolution to take more time in evaluating your investments and ensuring you're managing your wealth in the most tax efficient way. The new ISA and Junior ISA allowances for 2014/15 are:

ISA Allowance up until 30 June 2014 Allowance from 1 July 2014 (increases to)
Stocks and Shares ISA £11,880 £15,000
Cash ISA £5,940 £15,000
Junior ISA £3,840 £4,000
Overall Allowance £11,880* £15,000**

* £5,940 can be held in a Cash ISA
** £15,000 can be held in total (can be split per ISA type or all in one or other)

ISAs offer UK residents a tax efficient way of saving

An ISA is an Individual Savings Account which is held in a tax efficient wrapper. You do not pay income tax on the interest you earn and you do not pay capital gains tax on any profit from investments held in an ISA. This is not the case with an ordinary savings account or if you hold investments directly.

When it comes to income tax, if you are a higher or an additional rate taxpayer, you will not have to pay those relative top slices of income tax on your dividends if you’re invested in stocks and shares. This means if your marginal rate of income tax is 40% or 45% the savings can be significant.

The ISA allowance increases in line with inflation annually which means if you are a 40% or 45% taxpayer you can protect more of your dividends from tax each year. Individuals who have consistently maximised their ISA allowance over the years will have significant sums of money invested sheltered from capital gains tax.

Why not find out more about our ISA products and make the most of the new 2014/15 allowance?

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Risk Statement


Please remember the value of your investments and any income from them can go down as well as up and you may get back less than the amount you originally invested.

Laws and tax rules may change in the future without notice. The information here is our understanding in February 2014.

Remember you can only contribute to one Stocks and shares ISA each year and one Cash ISA, regardless of provider. If you have contributed to a Cash ISA this will reduce the amount you can contribute to a Stocks and Shares ISA.

This information takes no account of your personal circumstances which may have an impact on tax treatment.

All investments carry an element of risk which may differ significantly. If you are unsure as to the suitability of any particular investment or product, you should seek professional financial advice.

Our charges are guaranteed until 2016 but may be subject to change thereafter.