ISAs offer a flexible, tax-efficient way to save or invest each year, with options for adults and children, cash or stocks & shares, and the ability to complement your pension planning.
Important information: Individual Savings Accounts (ISAs)
As with all investments, your capital is at risk. The value of your investments and the income from them may fall or rise. Past performance is not a guide to future returns. Eligibility and ISA rules apply. Tax treatment depends on an individual’s circumstances and can change. This content is for information only and does not constitute advice.
Mattioli Woods Limited is authorised and regulated by the Financial Conduct Authority.
At Mattioli Woods, we provide personalised financial advice to help you make the most of your Individual Savings Accounts (ISAs) and broader financial planning goals.
Whether you’re saving for the short term, investing for growth or planning for the future, our team offers clear, practical guidance to help you make informed decisions.
We break down the complexities of ISAs, including annual allowances, tax benefits and investment options, so you can understand how they fit into your overall financial strategy. Our approach is tailored to your individual circumstances, ensuring your plan evolves as your needs and goals change.
An Individual Savings Account (ISA) is a tax-efficient way to save or invest your money. It acts as a 'wrapper' that allows you to hold cash, stocks & shares or a combination of both. Any growth, interest or income generated within the account is free from Income Tax and Capital Gains Tax. This means that whether your investments increase in value or you receive interest or dividends, you don't pay tax on these returns. Withdrawals from an ISA, whether it's the money you initially put in or the gains it has made, are also completely tax free.
“Maximising your ISA isn’t just about putting money away. It’s about integrating that tax-efficient wrapper into a wider, long-term financial plan tailored to your goals.”
– Tom Duckworth, Wealth Management Consultant at Mattioli Woods
ISAs can be as simple or as complex as you make them. While there are several types of ISAs, the more popular choices are investing in cash, stocks and shares, or a blend of both.
The annual ISA allowance is the maximum amount you can contribute to your UK ISAs each tax year without paying tax on the returns. For the current tax year (2025/26), the allowance is £20,000 for adults. You can split this allowance across different types of ISAs, for example, putting some into a cash ISA and the rest into a stocks & shares ISA, as long as the total contributions don't exceed the annual limit.
Depending on your risk profile and whether you use your allowance, you could build up your ISA, potentially joining one of over 5,070 ISA millionaires in the UK.
For example, £20,000 in an ISA achieving a 5% net return each year equates to £1,000 tax free, whereas a £200,000 ISA pot achieving 5% net per year would equate to £10,000 a year tax free*.
*All figures are for illustration purposes
From April 2027, the total annual ISA allowance will remain the same; however, the maximum you can place in a cash ISA will be £12,000 per annum for anyone under the age of 65. If you are 65 or over, then your annual contribution of £20,000 can be put into a cash ISA.
Junior ISAs have a separate annual allowance, which is currently £9,000 per child per tax year, allowing parents and guardians to save tax free for their children’s future. The money belongs to the child until their 18th birthday, when they can convert it into an adult ISA or withdraw the money.
(Capital at risk. ISA rules apply.)
It’s important to note that the allowance resets each tax year, so any unused allowance cannot be carried forward. Regularly contributing up to the allowance can help you take full advantage of tax-free growth over time.
for tax-free saving and investing
keeping more of your returns
for flexible long-term planning
depending on your goals
Junior ISAs let you save up to £9,000 a year per child
When it comes to saving for your future, it’s worth weighing up the benefits of both a pension and an ISA. A pension offers tax relief on contributions and is designed for long-term retirement planning, while an ISA provides flexibility and tax-free access to funds.
Many of our clients choose to use both, enabling them to build a balanced and adaptable investment approach.
At Mattioli Woods, we’re committed to empowering you with knowledge and options that best suit your individual needs.
This could be as a cash ISA or stocks & shares ISA, or a blend of the two! Capital at risk.
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If you’re ready to make the most of your UK ISA allowance or explore the best ISA options for your goals, our advisers are here to help.
Get in touch to book a consultation with one of our ISA specialists or use our online search to find a Mattioli Woods adviser.
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Currently, each individual has an allowance of up to £20,000 for the 2025/26 tax year. This means couples could potentially save up to £40,000 per tax year.
Under the rules announced in the 2025 Budget, the total ISA allowance remains £20,000 per tax year but from 6 April 2027, the maximum you can put into a cash ISA will fall to £12,000 for savers under 65.
For those 65 or older, the full £20,000 cash ISA allowance continues and you can always split your allowance across different ISA types (cash, stocks & shares, etc.), provided total new contributions don’t exceed £20,000 in the tax year.
The ISA annual subscription limit will stay at £20,000 until April 2031.
A JISA enables you to save up to £9,000 for the 2025/26 tax year. The main feature is that the money belongs to the child, not the person putting the money in, with withdrawals only able to take place once the child has turned 18.
The annual limit for Junior ISAs will stay at £9,000 until April 2031.
Cash and stocks & shares ISAs are very similar in that an individual can invest £20,000 per tax year. However, the differentiating factor is that if you prefer to keep your funds in cash, a cash ISA is for you but if you want to invest in other asset classes such as equities or fixed interest, you should consider a stocks & shares ISA.
Yes, Mattioli Woods works with Pershing Securities Limited to provide the platform for a stocks & shares ISA. We can provide a bespoke advised investment solution to potentially manage your ISA alongside assets such as your pension to provide a holistic approach.
Yes, ISAs offer flexibility, allowing you to move your savings between different providers and transfer your money between cash, stocks & shares, and Innovative Finance ISAs as your needs change.
As long as the transfer takes place between two ISAs, then no, your allowance is not used. The only time this would happen is if you transfer from an ISA to your personal bank account and then into a new ISA. This would be a new subscription.
Yes, most ISAs will offer this functionality but those with fixed-term deposits in cash may not allow you to make multiple payments. It’s always important to review the terms and conditions, as providers and arrangements vary.
Yes. Although ISAs are tax free during your lifetime, their value is usually included in your estate when you die, which means they may be subject to Inheritance Tax (IHT).
Yes. Your spouse or civil partner can, on your death, inherit an additional permitted subscription (APS), which allows them to add an amount equal to the value of your ISA to their own ISA without affecting their annual allowance.
No. Mattioli Woods does not offer a cash ISA. But, if you’re considering a cash ISA alongside your investments, our advisers can discuss how it might fit into your overall financial strategy and help you make the most of your annual ISA allowance.
Yes. The ISAs we provide through the Pershing platform are Flexible ISAs, meaning you can withdraw money and put it back in the same tax year without using up your £20,000 allowance. Not all ISAs offer this feature, so it’s important to check the details before opening one.
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