08 Apr 2019

Happy 20th Birthday!!

The Individual Savings Account is 20 years old this month and has grown up a lot.

From its early years where only £7,000 could be paid in per tax year, and limits on how much could be allocated to cash or stocks and shares elements, the ISA has now developed in to a much more liberal £20,000 and had various ‘offspring’, such as the help to buy ISA, Lifetime ISA and most recently the Intelligent Finance ISA, which not only saves Income and Capital Gains tax but also Inheritance Tax (with additional risks!)

If we had all made full use of each year’s allowance, over 20 years we would have spent just over £205,000, and at a 5% growth rate that would now be worth £324,000. I reckon that’s worth a birthday candle or two!