Risk warning: The value of investments and derived income can fall. Investors may get back less than they invested.

Maximise your savings before the end of the tax year with a stocks and shares ISA

This article is not advice or a recommendation to buy, sell or hold any investment. All trading involves risk. Losses can exceed deposits.

An Individual Savings Account, known as an ISA, can be a great option for an individual to maximise their savings. Up to £20,000 per tax year can be subscribed to the tax-free wrapper. And with the end of the tax year fast approaching, now is the time to act if you have not yet exhausted your ISA allowance.

A stocks and shares ISA is an attractive solution as the returns on investments can offer higher returns than alternative investments. With a stocks and shares ISA, an individual doesn’t pay income tax on any interest or dividends received within the wrapper, nor any Capital Gains Tax on investment returns. Any Income or Capital Gains received within an ISA won’t impact the annual ISA allowance.

Cash ISAs are the most popular ISA solution, although interest rates can be unattractive and sometimes offer lower interest rates than a traditional bank savings account.  However, the benefit of ISA’s is that there is no ‘all in’ decision to be made. Individuals can choose to split their ISA allowance across different kinds of ISA options, meaning, they can combine a cash ISA with a stocks and shares ISA.

A stocks and shares ISA can include shares in companies, government and corporate bonds, gilts, and collective’s (unit trusts and investment trusts), allowing an individual to form a diversified investment portfolio.

In the current tax year (up to 05 April 2019) and the coming tax year, individuals can save up to £20,000 in an ISA account. However, the ISA will roll over and new subscriptions are added to the previous tax year which can result in a larger investment pot.

With considerable tax benefits and potential better returns from suitable investments, a stocks and shares ISA can offer a great solution for those looking to plan for their future or utilise savings on top of an existing pension plan. You can also plan for your child’s future by utilising a Junior ISA (JISA) which allows up to £4,128 to be subscribed in the current tax year. Whilst a stocks and shares ISA can offer enticing returns, individual due diligence is always necessary prior to any investment being made. The value of an investment may go down as well as up and you may not get back the money you invested.

We looked at a comparison between £10,000 invested, 9 years ago in a traditional bank savings account, cash ISA, and stocks and shares ISA.

  • The stocks and shares ISA had an annualised return of 4.41%. This was based on the FTSE 100 Index Total Return (inc dividends) and generated a £5,396 return from the original investment.
  • The cash ISA had an annualised negative return of -0.67% and made a loss of £650, due to inflation.
  • The standard bank savings account also had annualised negative return with a loss of £1,253, also due to inflation.


Information and details are correct as of 18 March 2019. Past performance is not a guide for future returns.

Information and details are correct as of 18 March 2019. Past performance is not a guide for future returns.


The Shard Capital Stockbroking team are highly experienced in portfolio management and diversification and can tailor an investment solution for an individual looking to start or grow their ISA.

If you would like more information on a stocks and shares ISA or an alternate investment solution, please contact the Shard Capital Stockbroking team.


Important Information –

This document has been prepared and issued by Shard Capital Partners LLP (“Shard Capital”), which is authorised and regulated by the Financial Conduct Authority.

This document is a marketing communication and not independent research. As such, it has not been prepared in accordance with legal requirements designed to promote the independence of investment research.

This document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities, or related financial instruments. It does not constitute a personal recommendation as defined by the Financial Conduct Authority, nor does it take account of the particular investment objectives, financial situations or needs of individual investors. The information contained herein is obtained from public information and sources considered reliable. However, the accuracy thereof cannot be guaranteed.

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Shard Capital or its employees may have a position in the securities and derivatives of the companies researched and this may impair the objectivity of this report. Shard Capital may act as principal in transactions in any relevant securities or provide advisory or other service to any issuer of relevant securities or any company connected therewith.

None of Shard Capital or any of its or their officers, employees or agents accept any responsibility or liability whatsoever for any loss however arising from any use of this document or its contents or otherwise arising in connection therewith. The value of the securities and the income from them may fluctuate. It should be remembered that past performance is not a guarantee of future performance. Investments may go down in value as well as up and you may not get back the full amount invested. If you are unsure of the suitability of share dealing specifically for you then you should contact an Independent Financial Adviser, authorised by the Financial Conduct Authority. By accepting this document, the recipient agrees to the foregoing disclaimer and to be bound by its limitations and restrictions.

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