Time for an ISA review?
Investors placed over £73 in the cash component for every £100 they subscribed to ISAs, according to recent HMRC statistics for the tax year 2015/16. Overall, about half of all ISAs by value were held in the cash component. However, near zero interest rates mean the tax savings from cash ISAs are correspondingly small. With the advent of the personal savings allowance in this tax year, you may not even need an ISA to receive tax free interest. The value of tax reliefs depends on your individual circumstances. Tax laws can change. The Financial Conduct Authority does not regulate tax advice.