NEWS
Travel Weekly is extending its personal and business information content by teaming up with financial advisor David Croft for a regular column offering answers to readers’ questions about personal finance. In this column, David, who previously worked in the travel industry, explains the different types of ISA.
During my time in travel, I used to hear the word ‘tax’ and change the subject. But if we ignore tax, we also ignore perfectly legitimate tools that help you keep more of what you earn. One of the simplest is the ISA. An ISA is an Individual Savings Account
'DYLG &URƏW FINANCIAL ADVISOR
A guide to ISAs: how to save tax-efficiently in 2026
– a protective wrapper around your savings or investments. It doesn’t make the money grow, but it stops UK tax on interest, dividends and capital gains taking a bite if your money does grow. You also don’t need to declare ISA interest,
dividends or gains on your tax return. ISAs still form part of your estate when you die, so they can be relevant to inheritance tax planning. With allowances resetting on April 6 after the
tax year ends on April 5, I thought now would be a good time to run through the main types of ISA.
in a Stocks & Shares ISA will not provide the same security of capital associated with a Cash ISA.
3) Junior ISA (JISA): ‘Early check-in’ A Junior ISA is for under-18s living in the UK. It must be opened by a parent or legal guardian, but family and third parties can contribute up to the allowance of £9,000 per tax year (this is in addition to their own £20,000 allowance). The money belongs to the child: they take control at 16 and can access it at 18.
FINANCE
1) Cash ISA: ‘The City Break’ A Cash ISA is a savings account where the interest isn’t taxed. People often use them for emergency funds or short-term goals. Rates vary, so it’s worth shopping around and checking access rules, because some accounts are more flexible than others. Looking ahead: from April 6, 2027, the Cash ISA annual contribution limit is due to reduce to £12,000 for savers under 65. The overall annual ISA contribution limit will stay at £20,000 and is currently set to remain at that level until April 2031.
4) Lifetime ISA (LISA): ‘The Specialist’ A LISA is mainly for first-time buyers (homes up to £450,000) or saving for later life. You can pay in up to £4,000 a year and the government adds a 25% bonus (up to £1,000). Some strict rules apply – you must open it before age 40, you can only pay in until age 50, and taking money out for reasons other than a first home (or before 60) usually triggers a 25% charge – which can mean getting back less than you paid in. You can only pay into one LISA per tax year.
Q&A Some people may be able to
save more than others, but it’s about maximising the benefits available to
you, whatever your circumstances. You can pay into more than one ISA of the same type in a tax year (as long as you stay within the annual £20,000 limit). The main exception is the Lifetime ISA – you can
2) Stocks & Shares ISA: ‘The Long-haul’ This is where your money is invested in funds or company shares. Any growth and income inside the ISA stays free of UK income tax and capital gains tax. Investments can go down as well as up, so this is usually better suited to longer-term goals (think years, not months) for most people, and involves choosing a level of risk you’re comfortable with. An investment
Q Emily Man Wealth Management is an Appointed Representative of and represents only St. James’s Place Wealth Management plc (which is authorised and regulated by the Financial Conduct Authority) for the purpose of advising solely on the group’s wealth management products and services, more details of which are set out on the group’s website:
sjp.co.uk/products
18 19 FEBRUARY 2026
only pay into one LISA per tax year. Q This article is for guidance only and not personal advice. Check what’s right for your circumstances. The value of an ISA will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than you invested. The favourable tax treatment of ISAs may not be maintained in the future and is subject to changes in legislation. Please note, Cash ISAs and Lifetime ISAs are not available through St. James’s Place.
Q ASK DAVID A QUESTION Q
David is a UK-based financial advisor with Emily Man Wealth Management, specialising in helping people in the travel industry take control of their money. After a 15-year career in travel he retrained as an advisor and now focuses on clear, jargon-free financial planning for individuals and teams. If you have any questions relating to tax, long-term financial wellbeing, retirement or other financial matters that you would like answered, email
robin.murray@
travelweekly.co.uk with the subject: Question for David.
travelweekly.co.uk
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