Cashing in on ISAs
30 May 2014
HMRC has 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:
- The total amount invested in ISAs (other than JISAs) was £443bn at 5 April 2013, split almost equally between cash ISAs and stocks and shares ISAs.
- In 2012/13, adult ISAs attracted subscriptions of £57.4bn, of which over 70% went into cash ISAs.
- The average 2012/13 subscription was £3,501 to a cash ISA and £5,629 to a stocks and shares ISA, against maxima for the year of £5,760 and £11,280.
- JISAs, which were launched in November 2011, only attracted £392m in 2012/13.
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.
If you would like any further information please contact our Financial Services Department or call 0141 221 2984.