If you’re planning to start saving, or you already have savings and investments in place, don’t forget to claim your Individual Savings Account (ISA) allowance. An ISA is not actually an investment in itself, but a means of sheltering your savings from the taxman, which is why you may hear it referred to as a ‘tax-efficient wrapper’. Think of an ISA as a blanket under which you can wrap your savings to protect yourself from tax on any income and gains. In each tax year, you’ll have the opportunity to place another portion of your savings under the blanket.
The first consideration should be deciding which type of ISA suits your needs; a cash ISA or a stocks & shares ISA (or a bit of both).