What Is An ISA?

If you are looking for a better way to save, ISAs are a sensible option. There are different types of ISA to help you save or invest, depending on your goals. It’s important to consider all the benefits of each product and seek independent advice if you’re unsure.

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Important information: Our website offers information about investing and saving, but not personal advice. If you’re not sure which services are right for you, please request advice from Hilltop’s independent financial advisers. Remember that investments can go up and down in value, so you could get back less than you put in.

What is an ISA?

There are four main types of ISA to choose from:

Cash ISAs

A cash-only savings account based on a fixed or variable rate. A Cash ISA works just like a normal savings account, except you don’t pay income tax on the interest you earn. It’s a stable way to save, since your money won’t be invested in the stock market.

Investment ISAs

Also known as a stocks and shares ISA, an account that allows you to hold a wide range of assets, including cash, funds, shares, gilts, bonds, exchange traded funds (ETFs), exchange traded commodities (ETCs) and investment trusts. Unlike cash ISAs, these can fall in value as well as rise.

Innovative Finance ISAs

This higher risk option lets you lend your savings out to borrowers through peer-to-peer lending platforms, where interest earned is tax-free.

Lifetime ISAs

The lifetime ISA could help you get on the property ladder for the first time, or contribute towards your retirement savings. Each tax year, all subscriptions made into a Lifetime ISA up to the maximum of £4,000, will receive a 25% government bonus. This is equivalent to a bonus of £1 for every £4 saved.

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The tax benefits of ISAs

All ISAs allow you to save and invest without paying UK income or capital gains tax.

While most savers won’t pay tax on interest in regular bank or building society savings accounts, if you have a sizeable savings pot, ISAs could potentially save you quite a lot in tax.

Rates of tax	Basic rate tax payer	Higher rate tax payer	Additional rate tax payer	ISA investor
Capital gains on most investments (in excess of the £12,300 annual allowance)	10%	20%	20%	0%
Dividend income over £2,000* (i.e. income from shares)	7.5%	32.5%	38.1%	0%
Interest income (i.e. from cash, corporate bonds and other fixed interest investments)*	20% (over £1,000)	40% (over £500)	45%	0%

Tax rules can change and benefits depend on individual circumstances.

*This example assumes an individual has fully used their personal allowance and none of the interest falls within the starting rate for savings.

Transferring ISAs

You can move your ISAs to a new provider as often as you like, and whenever you want. The best part is, transferring doesn’t count towards your ISA allowance (although if transferring to a Lifetime ISA it may count towards your Lifetime ISA allowance). You can also move between types of ISA, for example if you’d like to transfer your Cash ISA to a Stocks and Shares ISA. Just remember that if you have a fixed rate Cash ISA and you transfer it before the fixed term ends, you may have to pay a penalty.

Our stocks and shares ISA assessment will give you a thorough understanding of how your current investments are performing, ﬁnd out your individual circumstances and investigate if there are more suitable products for you on the market.

What to expect

Expert advice in three simple steps

We’re committed to going the extra mile, holding your needs and requirements at the centre of our trusted advice. Everybody is different, and the financial advice we deliver reflects that. Our professional advice is always relevant, personalised and tailored to you.

Get in touch

Give us a call on 0161 413 7051 or let us know when you’d like us to call back. A friendly pension professional will discuss your enquiry to get a better understanding of your situation.

Analyse and report

As soon as you give us authority to work on your behalf, our team will get started analysing your pensions to produce an in-depth report and assess against the market.

The choice is yours

Your expert pension adviser will deliver their assessment and ensure you fully understand the advice given. Now you will be able to make informed decisions.

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or call us now on 0161 413 7051

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Even after you’ve done your research, you’ll probably still have some questions. Why not give one of our friendly team a call and explore whether financial planning advice might be right for you.

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Frequently asked questions

Should you have any queries about our services, or if you can’t find what you’re looking for simply get in touch with our friendly team who are here to answer any questions you might have.

An ISA’s full name is an Individual Savings Account and is a tax-efficient way of saving money. An ISA will allow you to invest a certain amount of money throughout the tax-year.

The maximum you can currently invest in a single tax year is £20,000. That doesn’t mean you’re only allowed to have that amount invested, as over the years you can accumulate funds within your ISA.

Hilltop Finance is a little different from the typical financial adviser; we are a predominately telephone-based advisory service. We believe that this offers more flexibility and benefits to our clients; including: –

Convenience – You can talk to your adviser when you are at home, on a lunch break or commuting to work.

More Secure – We record all calls, and they’re logged and compliant to FCA standards. Face-to-face appointments aren’t, so there could be more opportunity to be misadvised.

In Your Own Time – We work at a time that suits you. You don’t have to wait around if we’re stuck in traffic or late to the booked appointment.

Efficient Process – With efficient telephone conversations, we can keep the impact on your busy daily life at a minimum.

Accessible – Your financial adviser is more accessible through a telephone meeting than booking a specific face-to-face appointment, weeks in advance.

Yes, you pay no tax on income or capital gains tax.

Tax treatment depends on the individual circumstances of each client and may be subject to change in future.

No, you don’t need to declare your ISA on your tax return.

Tax treatment depends on the individual circumstances of each client and may be subject to change in future.

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