We've been speaking to lots of our clients about ISAs recently. With the tax-year end deadline (April 5th) looming, it's around now that many people check to see if they can maximise the amount they contribute to these extremely tax-efficient products. That's because if you don't use your personal ISA allowance by the end of each tax year - you lose it. And nobody likes to miss out on the opportunity to reduce their tax bill!

With this in mind, here's a quick reminder about ISAs, the limits and how they work.

What is an ISA?

An ISA or Individual Savings Account is a tax-wrapper that offers a tax-efficient way to save or invest. Any growth or capital gains generated by the underlying investments held within your ISA are free from any tax. Less tax means higher returns for you.

ISAs have been around a while now. The government introduced ISAs as an incentive to save, hence the generous tax benefits.

How much can you save into an ISA?

In the 2016/17 tax year you can contribute up to £15,240 into your tax-free ISA. This amount will increase to £20,000 from 6th April 2017. If you don't utilise your allowance each tax-year then sadly you lose it. You cannot roll your allowance over into the next tax year.

Why might you consider ISAs?

ISAs are a great way to save and invest tax-efficiently. A stocks and shares ISA can target higher returns than cash savings. This is getting more and more important as inflation continues to rise and the cost of living becomes more expensive.

You can invest in a wide range of different funds, assets and stocks through an ISA and target a level of risk that is appropriate for you and the outcome you are trying to achieve. A financial adviser can help you ascertain exactly what this might mean for you and your savings plan.

Who can open or contribute to an ISA?

Any UK resident aged 18 or over (16 for Cash ISAs) can invest in an ISA. There is no upper age limit and savings can be withdrawn whenever you choose. The annual ISA allowance offers the chance to create a substantial portfolio sheltered from tax.

Can Flying Colours help me open or top-up an ISA?

We certainly can. We think ISAs are an excellent vehicle for saving and investing into.

If you'd like to speak to one of our financial advisers to find out more, just call us on 0333 241 9900 or you can request a call back here

It's important to remember that the value of investments can fall as well as rise so you could get back less than you invest. Tax rules can change and the value of any benefits depends on individual circumstances.