Cashing in on ISAs

HMRC have recently issued statistics showing the ISA decisions that were being made in recent years.

HMRC take their time to deliver statistics, so it was not until late April 2014 that the details of ISA subscriptions in 2012/13 emerged. They revealed:

These statistics show why the Chancellor was able to make the Budget increases to ISA limits. Put simply, most of the money will go into cash deposits where, at current interest rates the tax loss is small, and few investors come near to investing the maximum (in 2011/12 less than 8% did so).

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investing in shares should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances. The value of tax reliefs depends on your individual circumstances. Tax laws can change. The Financial Conduct Authority does not regulate tax advice.