Why it pays to save
You’re interested in saving for your future – that’s why you’re here. And luckily the UK government wants to help you save too. That’s why they’ve given you a host of tax benefits in the form of pensions and ISAs.
Each type of account helps you save for different goals that suit you and how you live your life. And each account has different tax benefits, and different limits on how much you’re allowed to pay in.
Which? Recommended Provider
“I wish I could have invested with Vanguard years ago”
Learn moreWhat you can do with your accounts
Invest up to £20,000 each tax year
You can pay a total of £20,000 a year across all your ISAs each tax year. This is called your ISA allowance.
Your ISA allowance runs out at the end of the tax year on 5 April – so use it or lose it!
Withdraw anytime, tax-free
You can withdraw from your Stocks and Shares ISA whenever you need to, with no exit fee. Your withdrawals will be free from Income Tax and Capital Gains Tax.
The Vanguard Stocks and Shares and ISA is a flexible ISA. That means if you withdraw money from your ISA and pay it back within the same tax year, it will not use any of your allowance.
Transfer in from other providers
If you have money invested in ISAs elsewhere, you can use an ISA transfer to move it to Vanguard – without it affecting your allowance.
Account types at a glance
Stocks and Shares ISA | Personal Pension | Junior ISA | General Account | |
|---|---|---|---|---|
Annual allowance | £20,000 | Up to £60,000 (or your income, whichever is lower) | £9,000 | Unlimited |
Carry forward allowance | Previous 3 years | |||
Who can pay into it | Only you | You or another Vanguard account holder. Business owners can make company contributions. | A parent who manages the account. Family and friends can gift money to the account. | Only you |
Tax relief on contributions | ||||
Tax-free withdrawals | 25% of withdrawals tax-free, the rest taxable as income | Tax-free, once the child has turned 18 | ||
When you can withdraw | Anytime | From age 55 (age 57 from 2028) | The child can withdraw from age 18 | Anytime |
What you can invest in | Over 85 Vanguard funds | Over 85 Vanguard funds | Over 85 Vanguard funds | Over 85 Vanguard funds |