Important information: Stocks and shares 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.
What is a stocks and shares Individual Savings Account (ISA)?
A stocks and shares ISA is a tax-efficient investment account where you can invest in a portfolio of shares, bonds, and other investments. The main benefit is that any growth or income generated within the ISA is tax free, which can enhance the rate of growth over the long term.
Capital at risk. ISA rules apply.
Benefits
- tax-free growth and income
- flexibility in investments
- potential for higher returns
Disadvantages
- investment risk
- potential for losses, charges
- limited access to your money (because you should take a long-term view with investments)
Benefits of factoring in financial advice
Holistic planning
We work with you to create a comprehensive investment strategy (which can include your stocks and shares ISA as well as other invested assets, for example, pensions) that aligns with your overall financial goals. This ensures your ISA assets form part of your wider wealth management strategy.
Short-term goals
Unlike pensions, there is no minimum age at which funds within an ISA can be accessed. Utilising these tax-efficient products enables you to grow your savings to help meet goals that may need to be met prior to retirement, for example, a house deposit, school fees, or paying off a mortgage.
Tax-efficient income planning
Did you know, withdrawals from ISAs are not subject to income tax? Therefore, a sustainable withdrawal plan can help you meet your income goals tax efficiently. At Mattioli Woods, this is where, for the right clients, we consider an ‘income-generating’ portfolio. Dividends and interest from such a portfolio can provide a regular source of tax-free income, without needing to sell units in your portfolio.
FAQs
Frequently Asked Questions
Can anyone open a stocks and shares ISA?
Yes, any UK resident aged 18 or over can open a stocks and shares ISA.
What is the ISA allowance for 2026/27?
The ISA allowance for 2026/27 is £20,000 per individual.
Can I pay into more than one stock and shares ISA?
You are allowed to open more than one stocks and shares ISA in the same year, providing you do not exceed your overall ISA allowance of £20,000 (cash, and stocks and shares).
Can I withdraw money from my stocks and shares ISA?
Yes, you can withdraw money from your stocks and shares ISA at any time. However, doing so may impact your future ISA contributions. For example, if you have maximised your £20,000 allowance this tax year, and then withdraw £10,000, you will not be able to add this money back in during the tax year. That is unless the ISA is a ‘flexi-ISA’, meaning that you can replace any withdrawals without impacting your allowance, providing the withdrawal and replacement are done in the same tax year. Remember, investments are intended to be held for 5 years+, so selling them early to make a temporary withdrawal could cause capital losses.
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