Choosing the right tax wrapper
Minimising the tax that you pay on your investment returns is essential. However, it can be hard to know whether an ISA makes more sense than a Pension, or even just a simple investment account.
ISA & Pension BasicsAnnual limits:
- Junior ISA £4,128
- ISA £20,000
- Pension 100% of salary up to max of £40,000 (less for earnings over £150,000), min of £3,600
- Junior ISA @ 18
- ISA at anytime
- Pension after 55 (57 from 2028)
- Junior ISA & ISA: tax free returns
- Pension: tax relief on contributions, tax free returns, tax paid on distributions other than 25% lump sum, usually free of IHT
General Investment Account
Individual Savings Account
Self-Invested Personal Pension
Nothing on this website should be construed as offering personal advice. Please remember that the eligibility to invest in an ISA, Junior ISA or pension will depend on individual circumstances. Tax rules and rates may change in the future. The value of investments can rise and fall and you may not get back the amount invested.