Investing in ISAs

ISAs are one of the most tax-efficient and popular ways to save and invest for the future, offering attractive tax breaks and huge flexibility.

What is an ISA?

An Individual Savings Account (ISA) provides a valuable and tax-efficient wrapper for cash investments.

Any money saved into an ISA benefits from tax-free savings; any income and gain from interest made does not need to be declared. For investors over the age of 65, income received from their ISA investments does not impact any higher rate personal allowance they receive.

We offer two types of ISAs, a Stocks and Shares ISA and a Cash ISA. Individuals can invest into cash, stocks or shares, or both, as long as they do not exceed the annual ISA allowance. For the 2023/2024 tax year, the total ISA allowance is £20,000 and only one ISA can be opened each tax year per person. Your allowance resets on the 6th of April each year.

ISA rates differ depending on which provider you save your money with. Working with a financial adviser ensures you get the best deal available to you at the time of investment. Contact us today to learn about how we can make your money go further with ISA investments.

Types of ISAs

There are many different types of ISAs. At Cooper Associates Wealth Management, we support with:
  • Cash ISAs
    Cash ISAs

    With a Cash ISA, money can be invested in instant access or fixed-rate accounts by anyone over the age of 16. Instant access accounts are likely to have lower interest rates but won’t come with any fees or penalties for withdrawing funds. Fixed-rate accounts are likely to have increased interest rates, but will deter investors from withdrawing money until the fixed-term comes to an end by potentially imposing early exit fees.

  • Stocks and Shares ISAs
    Stocks and Shares ISAs

    Stocks and Shares ISAs hold investment funds and/or shares, and can be opened by anyone over the age of 18. There are numerous places your money could be invested if you choose a Stocks and Shares ISA, such as unit trusts, investment trusts, individual stocks and shares, and corporate and government bonds.

  • Junior ISAs (JISA)
    Junior ISAs (JISA)

    Junior ISAs (JISAs) are for parents or grandparents looking to invest money for their children’s future. Every year, a total of £9,000 can be paid into a JISA. The tax benefits of a JISA are the same as an adult ISA, such as tax-free interest and no further tax to pay on income or capital gains. When your child turns 18, you can either choose for this money to be paid to them or to tie it up in a Matured Child Trust Fund or an ISA.

Cash ISAs
Stocks and Shares ISAs
Junior ISAs (JISA)
Cash ISAs

With a Cash ISA, money can be invested in instant access or fixed-rate accounts by anyone over the age of 16. Instant access accounts are likely to have lower interest rates but won’t come with any fees or penalties for withdrawing funds. Fixed-rate accounts are likely to have increased interest rates, but will deter investors from withdrawing money until the fixed-term comes to an end by potentially imposing early exit fees.

Stocks and Shares ISAs

Stocks and Shares ISAs hold investment funds and/or shares, and can be opened by anyone over the age of 18. There are numerous places your money could be invested if you choose a Stocks and Shares ISA, such as unit trusts, investment trusts, individual stocks and shares, and corporate and government bonds.

Junior ISAs (JISA)

Junior ISAs (JISAs) are for parents or grandparents looking to invest money for their children’s future. Every year, a total of £9,000 can be paid into a JISA. The tax benefits of a JISA are the same as an adult ISA, such as tax-free interest and no further tax to pay on income or capital gains. When your child turns 18, you can either choose for this money to be paid to them or to tie it up in a Matured Child Trust Fund or an ISA.

Where and how you invest your money will be dependent on your financial goals.
Speaking to a Wealth Management specialist will be integral to ensure you
choose the right investment structures for your future needs.

ISA Allowance & Benefits

The 2023/2024 tax year ISA allowance is £20,000, which will reset on the 6th of April 2024. The tax benefits of ISAs provide an attractive option for many investors. All interest earned is tax-free and no further tax needs to be paid on income or capital gains.

A further ISA tax benefit is the ability to switch between funds or shares, without triggering a Capital Gains Tax Liability.

However, there are a few things to note within ISA tax rules:

  • ISAs are not exempt from Inheritance Tax (IHT). Any money left in an ISA on the death of an individual counts towards the value of their estate and will be subject to IHT if their overall estate is more than £325,000.
  • ISAs also cannot be held jointly or on behalf of someone else.
  • If you do not use your £20,000 allowance, there is no ability to ‘carry over’ unspent allowance to the next tax year.

If you choose to withdraw money from your £20,000 ISA allowance, you will still only be able to invest the rest of your allowance for that year. For example, if you invest £10,000 and withdraw £2,000, you can still only invest a further £10,000. This would mean your final investment sum at the end of the tax year would be £18,000 rather than £20,000.

Long-term investing with ISAs

ISAs can be a great way to set up a long-term investment scheme. Much like many other financial investments, the earlier you start building up your ISA pot, the more growth potential you have.


Which ISA option you choose to invest in, Cash or Stocks and Shares, will depend on your financial goals and your appetite for risk. Cash ISAs will be more appropriate for people who are more risk-adverse and are perhaps uncomfortable with the risks and volatility that can come with the stock market. However, you may be comfortable with risk, but need to withdraw money in the short-term from your ISA. In this case, you may also choose to invest in a Cash ISA.

If you’re open to accepting the risks of the Stock Market, understanding that you may potentially lose money from your investment as well as make gains, then a Stocks and Shares ISA may be more suitable. It may also be more appropriate if you’re planning a long-term investment strategy.

Of course, you don’t need to put all your eggs in one basket. You can split your annual allowance between Stocks and Shares and Cash if that works best for you.

If you’re planning on opening an ISA, seeking Wealth Management support is a key way to ensure your money is working as hard as it possibly can. We’ll work hard on the diversification of your ISAs, improving the chances of securing good returns while also minimising risk. Without expert support, you risk passive investing, which could mean your money doesn’t go as far as it could.

Talk to our specialist team today to find out how we can make your ISAs work as hard as possible for your future needs.

Benefits of working with Cooper Associates

As highly experienced Wealth Management professionals, we will work closely with you, establishing your risk profile to create a bespoke, well-diversified, and balanced ISA portfolio. Through regular review meetings with your dedicated financial consultant, we can adjust the mix to reflect your changing needs or any changes to the markets.

Investing is best suited by taking a long-term approach; however, some ISAs do provide you with the freedom to access your capital whenever you need. One of our competitive advantages is that we can draw on the expertise of some of the world’s leading investment professionals to manage your investment portfolio. No matter whether you are looking to invest for income or growth, we will provide first-class advice and access to a wide range of investment solutions to help you achieve your financial goals.

Julia and I are very happy to recommend Cooper Associates Wealth Management as we are both enjoying our retirement with financial security thanks to their sound advice.

Mr and Mrs Statton, Retired

Open an ISA with Cooper Associates

Investments into a St. James’s Place ISA can be made by regular monthly contributions or as an annual lump sum contribution.
Speak with an adviser regarding your savings objectives.

The value of an ISA with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

An investment in a Stocks & Shares ISA will not provide the same security of capital associated with a Cash ISA. The favourable tax treatment given to the ISA may not be maintained in the future, as this is subject to changes in legislation.

Frequently Asked Questions about ISAs

  • Who can Open an ISA?
    Who can Open an ISA?
    • To open a Cash ISA, you must be a UK resident and be over the age of 16
    • To open a Stocks and Shares ISA, you must be a UK resident and be over the age of 18
  • Can I pay into more than one ISA?
    Can I pay into more than one ISA?

    You can only pay into one ISA per tax year, with an ISA allowance of £20,000. This allowance resets every year on the 6th of April.

  • Can I withdraw money from an ISA?
    Can I withdraw money from an ISA?

    If you have a flexible ISA, then you can withdraw money at any time without penalty. If you are on a fixed-term rate, then you may not be able to withdraw your money without incurring a penalty fee.

  • Are there any penalties for withdrawing money from an ISA?
    Are there any penalties for withdrawing money from an ISA?

    Penalties for withdrawing from a fixed-rate ISA will differ amongst providers. Ask your Wealth Manager to check the terms and conditions for you if you are unsure.

Who can Open an ISA?
Can I pay into more than one ISA?
Can I withdraw money from an ISA?
Are there any penalties for withdrawing money from an ISA?
Who can Open an ISA?
  • To open a Cash ISA, you must be a UK resident and be over the age of 16
  • To open a Stocks and Shares ISA, you must be a UK resident and be over the age of 18
Can I pay into more than one ISA?

You can only pay into one ISA per tax year, with an ISA allowance of £20,000. This allowance resets every year on the 6th of April.

Can I withdraw money from an ISA?

If you have a flexible ISA, then you can withdraw money at any time without penalty. If you are on a fixed-term rate, then you may not be able to withdraw your money without incurring a penalty fee.

Are there any penalties for withdrawing money from an ISA?

Penalties for withdrawing from a fixed-rate ISA will differ amongst providers. Ask your Wealth Manager to check the terms and conditions for you if you are unsure.

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