ISAs explained: How to get the ‘best out of your savings’ this tax year | Personal Finance | Finance

The investment expert shared five tips for making the most out of an ISA and doing what’s best for each individual.

Use the ISA allowance as far as possible
People currently invest up to £20,000 a year with an ISA, often the first port of call for those looking to save tax. They are simple, flexible and tax efficient. Gains realised on the sale of stocks and shares within an ISA are free from tax, and so is any income from dividends or interest.

Don’t rush into an investment decision
If unsure where to invest in the Stocks & Shares ISA, people can always secure this year’s allowance with cash now and decide later. There is no charge for holding cash but note that no interest is paid currently so this should only be considered as a temporary measure.

Consider a spouse’s allowance too
If someone is married or in a civil partnership it’s possible to organise their affairs efficiently so that tax-free allowances aren’t lost.

Don’t forget the kids
Junior ISAs are a popular way for family and friends to build up tax-efficient savings and investments for a child. The tax benefits are the same as an adult ISA – no capital gains tax, and no further tax to pay on income.