Benefits of investing in an ISA

After the 5th April any unused ISA allowance will be lost forever. ISAs have always been a flexible and simple investment wrapper, allowing you, in 2014/15, to save £15,000, and £15,240 in 2015/16. The majority of investors hold the money as cash or investments and pay no tax on the growth or income they receive from the product.

With access to the money at any time, it is a great way to save, and save time, with no capital gains tax and no further tax to pay on income from your investments.

One of the main ISA rules is that you can only have one stocks and shares ISA managers per year, and one cash ISA manager per year. Thankfully, by investing through our FundStore, you can invest in a number of different fund providers.

There has been a greater sense of flexibility in the ISA over recent years, with investors being able to hold both cash and stocks and shares in any proportion whilst also being able to switch between the two as often as you may like. Cash is a good asset when interest rates are higher, but returns are very low currently. If you would like to transfer your Cash ISA to an Investment ISA through Chelsea FundStore, please complete an ISA transfer form.

In the Autumn statement last year the Chancellor announced changes to the ISA death benefits, meaning that the surviving spouse can save the inherited ISA on top of his/her allowance the following tax year.

For example, if one spouse passes away, and at date of death has £100,000 saved into their ISA, the following tax year, say 2015/16 for example, the surviving spouse will have £100,000 on top of her/his normal ISA allowance. This therefore means he/she could save £115,240 into her/hiis 2015/16 ISA.

Click here to watch my interview with Simon Read, and find out where may be a good place to invest your ISA in the current climate.

Topping up your current ISA with Chelsea, or starting one, has never been simpler. You can do this: