Why you shouldn't wait to save on tax
In this special edition of our personal finance podcast, Barclays’ Clare Francis and Rob Smith discuss everything you need to know about investment ISAs, and why you shouldn’t wait until 5 April to use your allowance.
Reasons to choose an ISA
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Capital Gains Tax
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Income tax
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Tax on dividends
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Growth interest dividends
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Income growth
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Capital growth
All income or gains you receive in your ISA will be protected from income tax, tax on dividends and Capital Gains Tax (CGT).
However, tax rules can change and any benefits from them depend on your circumstances. Bear in mind too that investments can fall in value. You may get back less than you invested.
Types of ISAs
Cash ISAs
A savings account based on a fixed or variable deposit rate.
Innovative finance ISAs
A higher risk arrangement that allows you to lend your savings out to borrowers through peer-to-peer lending platforms.
Investment ISAs
Also known as a stocks and shares ISA, an account that allows you to invest in a wide range of assets, including cash, funds, shares, gilts, bonds, exchange traded funds (ETFs), exchange traded commodities (ETCs) and investment trusts.
Lifetime ISAs
The lifetime ISA is a deposit account which helps savers get on the property ladder for the first time or contribute towards their retirement savings. The government pays a 25% bonus on cash paid in, up to a maximum of £4,000. But they're not flexible and there are penalties if you withdraw money for other uses.
More to play for
Tax-free investing
ISA allowance for the 2024-25 tax year will remain at £20,000, of which a maximum of £4,000 can be paid into a lifetime ISA.
Tax rules can change and any benefits from them depend on your circumstances.
Choice of accounts
A wide range of investment options to choose from with increased flexibility.
- Cash with a cash ISA
- Cash and investments with an investment ISA
- Peer-to-peer lending with an innovative finance ISA
- Cash and investments with a lifetime ISA
Flexible options
You can split your ISA allowance between a cash, investment, innovative finance, or lifetime ISA,(1) provided you stay within the £20,000 limit.
You can take advantage of the flexible ISA rules with Barclays – you can withdraw money from our Investment ISA and replenish it within the same tax year, without this counting towards your annual ISA limit. Not all ISA providers offer this flexibility. Maximum of £4,000 can be paid into a lifetime ISA per year.
Freedom to transfer
You can transfer money freely between a cash ISA, an investment ISA and an innovative finance ISA, as your needs and risk appetite changes over time.
If you move any money out of a lifetime ISA, however, you’ll forfeit the government bonus and face a 5% charge on the amount transferred out. You can transfer cash or investments into a lifetime ISA up to the annual limit, and still receive the government bonus but it doesn’t represent use of your annual allowance.
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Investment ISA
Easy, tax-efficient, low-cost investing
Grow your money in a tax-efficient ISA. Invest up to £20,000 per year with a simple low annual charge and dedicated customer support.
Get started in minutes and secure your annual allowance with a debit card, a monthly Direct Debit or by moving money from your Barclays account. There’s no charge to hold cash if you need some time to decide where to invest.
You can also transfer an existing ISA(2) to benefit from our award-winning ISA service.(3)

Transferring ISAs
There are a number of reasons why transferring your Individual Savings Account (ISA) could stand you and your investments in good stead, although make sure you’re aware of the potential drawbacks too.(4)
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Important information
Barclays doesn’t offer an innovative finance ISA or a lifetime ISA.(Return to reference)
Before transferring investments, find out about any charges, exit penalties, benefits you may lose, or investment that you can’t transfer to us.
(Return to reference)
The Smart Investor Investment ISA was named Best Stocks & Shares ISA Provider 2022 at The Online Money awards.(Return to reference)
Before transferring your investments, find out about any drawbacks, charges, exit penalties, benefits you may lose or investments that you can’t transfer to us.(Return to reference)
Lines are open from 7:30am to 7pm Monday to Thursday, 7:30am to 6pm on Friday and closed during weekends and public holidays. To maintain a quality service, we may monitor or record phone calls. Call charges.(Return to reference)