Around Saddleworth & Tameside

Around Saddleworth & Tameside Magazine



It’s important to make the most of your ISA allowance this year.

When it comes to saving for the future it is hard to find a simpler starting point than setting up or investing in an ISA. Despite accounting for only one in five subscriptions, Stocks & Shares ISAs have proved their ability to grow investors’ wealth more successfully over the longer term (1).


Phil Woodcock, Head of Investment Communications at St. James’s Place, explains, “The average easy access Cash ISA is currently paying 0.85%(2) and inflation is running at 1.4%(3). At that rate, savers opting for a Cash ISA are currently losing money in real terms. There seems little point in saving tax on that. What’s more, this has been the dilemma facing cash savers for most of the last decade, during which time equity markets have performed strongly.”


The ISA allowance for this tax year is £20,000, so doubling up between a couple represents a significant investment and tax-saving opportunity. But it’s not possible to carry over any unused allowance from year to year, so it’s important to use as much of this annual ISA allowance as possible before the end of the current financial year on 5 April. The favourable tax treatment given to ISAs may not be maintained in the future as they are subject to changes in legislation.

For very young savers, the opportunity to invest on their behalf in a Junior ISA before the end of the tax year shouldn’t be overlooked either. The allowance for each child in this tax year is £4,368 and, whilst it must be set up by a parent or guardian, anyone can pay money in. Just like a standard ISA, there is no tax to pay on any income or gains, while the funds cannot be accessed until the child reaches 18 years old. It’s, therefore, a fantastic, long-term opportunity to build wealth for their future.


1. Your ISA allowance is £20,000 and if you don’t use it, you’ll lose it.

2. Remember your Personal Savings Allowance when considering your cash strategy.

3. Review existing ISAs – could they be working harder for you?

4. Consider an ISA regular savings plan if you’re worried about market volatility.

5. Invest in a Junior ISA to give younger family members a head start.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select, and the value can, therefore, go down as well as up. You may get back less than you invested. An investment in equities (funds) does not provide the security of capital associated with a Cash ISA or a deposit account with a bank or building society.

HMRC, Individual Savings Account (ISA) Statistics, April 2019 (1)

Moneyfacts, January 2020 (2)

Office for National Statistics, January 2020 (3)

Mark Lowe Wealth Management, wealth management and financial planning specialists serving individuals, families and businesses in the North West of England.

Contact Mark Lowe Wealth Management

Tel: 0161 338 4659

Mob: 0777 9725562


First Floor . 1 Mossley Road. Grasscroft. Oldham. OL4 4HH

The Partner Practice is an Appointment representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conducts Authority) for the purpose of advising solely on the Group’s wealth management products and services, more details of which are set out on the Group’s website at The ‘St. James’s Place Partnership’ and the titles ‘Partner’ and ‘Partner Practice’ are marketing terms used to describe St. James’s Place representatives.

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