ISAs, or Individual Savings Accounts, have been around for over 20 years. Back in 1999, then Chancellor Gordon Brown introduced the product in the hope of encouraging more people to save for the future.
Since then, ISAs have become an essential part of many financial plans.
Over the past 20 years, the maximum annual contribution has risen from £7,000 per tax year to £20,000 for 2020/2021.
Had you have managed to set aside the maximum each tax year since 1999/2000, you would now have placed over £225,000 into ISAs, and largely out of HMRC’s reach.
Despite the overall success ISAs have enjoyed over the last two decades, they weren’t an instant hit. In fact, Labour MP Quentin Davies branded them a “colossal failure” a few months after they launched, due to their limited uptake. But ISAs gradually became a saving staple among the British public.
One of the key aims of the ISA was to make saving simple, replacing the now-defunct Personal Equity Plans (PEPs) and Tax-Exempt Special Savings Accounts (TESSAs). However, as with many things finance-related, successive governments have changed parts of ISAs, added new products, and altered limits. As a result, picking an ISA product and understanding how to make the most of your allowance isn’t as simple as it once was.
ISAs have become an essential part of financial plans for many individuals and families. If you’d like to discuss how they fit into your wider plan and which type of ISA suits your goal, please contact us.
Pembroke manage a unique range of investment portfolios for ISAs which are designed to suit your attitude to investment risk, your need for growth or Income or your ethical and sustainable Investment preferences.
Please Note: 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.