INNOVATIVE Finance ISA (IFISA) provider EasyMoney has paid tribute to the power of the ISA savings wrapper, as the total amount of tax relief passed £3bn for the first time.
According to the most recent HMRC data, tax relief on ISAs was worth £3.15bn by 31 January 2019, a nine per cent increase on the £2.9bn that was accrued in the 2017/18 tax year.
“These figures are yet another reminder about the huge tax savings available to investors by using an ISA,” said Andrew de Candole, chief executive of EasyMoney.
“Investors who can afford to, should be taking up their full allowance on an ISA or IFISA. Maximising returns is important given the current poor performance of cash ISAs.
“By using an IFISA and benefiting from these tax savings, investors can substantially increase the income and growth on their investments.”
EasyMoney, the property-backed peer-to-peer lender which is part of Sir Stelios Haji-Ioannou’s Easy family of brands, pointed out that IFISA investments rose eightfold between the 2016/17 tax year and 2017/18.
The “vast amount of tax savings on offer to investors from ISAs” means that individuals should try to make maximum use of their £20,000 annual ISA allowance, it said.
The EasyMoney IFISA currently offers rates of up to 4.05 per cent on investments of £100 or more, and up to 7.28 per cent on investments of £10,000 or more.
The platform follows the model of the other EasyGroup businesses, by prioritising customer care, a purpose-built digital platform and access to the client service team via telephone and online chat.