Savers should endeavour to utilise their annual ISA allowance every year to reduce the effects of tax on their savings. Over a life time this may bring considerable income tax reductions for people seeking to take an income from their ISA account.

This may appear to be of little or no immediate benefit to non-tax payers. However, we recommend that non-tax payers should still consider whether an ISA may present a benefit in future should your income increase due to the death of a spouse or civil partner, so causing you to become a tax payer. Similarly a lump sum inheritance may also change your tax status. At this stage, it would not be possible to place all your savings into an ISA due to the annual contribution limits.

The Additional Permitted Subscription provides an addition ISA allowance to your spouse or civil partner on your death equal to the value of all your ISAs at the time of your death. This again promotes ISA benefits for non-taxpayers. Forward planning is therefore the key to reducing any current and future potential tax bill.

ISAs benefit people whose income(s) exceeds their annual personal allowance and personal savings allowance by mitigating income, rental, dividend and capital gains tax at your marginal rate.

For those people that feel that their ISA is rubbish, we would recommend that they seek advice from a qualified investment professional, who will be able to assess whether the investments held in your ISA are still suitable.