The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.

Stocks and Shares ISAs invest in Corporate bonds; stocks and shares and other assets that fluctuate in value.

Investors do not pay any personal tax on income or gains, but ISAs do pay unrecoverable tax on income from stocks and shares received by the ISA managers.

Tax treatment varies according to individual circumstances and is subject to change.

Tax planning is not regulated by the FCA.


Individual Savings Accounts (ISAs) continue to be one of the most popular tax-efficient schemes.

An ISA is basically a ‘wrapper’ into which you can place cash or stocks and shares up to a certain limit each year. For the 2017/18 tax year the total limit per individual is £20,000, which means that a couple could place £40,000 this year. Effectively any interest, income or growth on the cash or shares within the ISA is free from any personal liability to income tax or capital gains tax.

And from this tax year a greater level of flexibility has been introduced. Savers have now been given the freedom to take money out of their ISA and put it back in later in the year, without losing the ISA tax benefits, as long as the repayment is made in the same financial year as the withdrawal.  If you already have an ISA, check that your plan provider is on board with this facility.

What do we mean by a tax wrapper?

This is simply a form of investment account which affords you protection from tax – which could be Income Tax, Capital Gains Tax, Corporation Tax (for business owners) or Inheritance Tax.

In the UK there are many types of wrapper available and from a financial planning perspective, tax wrappers offer an excellent opportunity to add value to your savings and investments. They do this through enhancing the returns your investments generate by shielding those returns from taxation.  Using a variety of wrappers also provides choice as to how you use capital and income to meet your financial needs.
A well designed financial plan delivers a clear strategy to use the available tax wrapper allowances to your best advantage and our regular review process keeps you up to date on how these allowances change and adapts your personal plan to best effect.

For example, had someone used all of their individual ISA allowances since its launch in 1999, this could have added up to over £166,500 of contributions, with any growth on that amount being sheltered from tax.

Alternative Tax Efficient schemes
Dependent on your attitude to risk, there are other tax-efficient schemes that are more specialised which can bring greater returns, but these have to be balanced against the greater risk. Whatever you opt for, do recognise that it’s not solely about being tax-efficient, as sensible as that may be…  You also need to consider the income and growth potential you would like to achieve from your portfolio.

Making the right decisions about your savings and investments can seem a daunting prospect and it’s prudent to take expert advice. Harris Begley provides a free initial, no obligation consultation to assess your financial circumstances and to plan for your future.

To book your free initial, no obligation appointment, please contact Harris Begley on Tel 01736 366550 or email