Skip Header

Don't pay more tax than you need to

  Important information - please keep in mind that the value of investments can go down as well as up, so you may get back less than you invest.

Making the most of your tax allowances

Did you know you can pay less tax if you use the right types of investment accounts for your money?

The government makes this simple with tax allowances you can use easily when you save money into an Individual Savings Account (ISA), Junior ISA, self-invested personal pension (SIPP) and Junior SIPP.

An allowance is a yearly limit on how much you can save into these accounts, which then benefit from tax-free growth. The government will also top up any money you pay into your SIPP in the form of tax relief. 

If you don't use these allowances:

  • You lose the opportunity for tax-free growth that money could have made if it were invested
  • You could miss out on money that the government gives towards saving for your future retirement

Choosing how you want to distribute your savings among your allowances depends on your personal goals and the life events you need to plan for. You might want to consider how and when you want to access your savings, how much you'll need for your retirement, and even estate planning for your beneficiaries.

How to save in a tax-efficient way

At the start of every tax year on 6 April, your ISA, Junior ISA, SIPP and Junior SIPP allowances reset.

An ISA is a tax-efficient way to save for all sorts of goals and is easy-to-access, while a SIPP is typically for retirement as you normally cannot withdraw the money until you're 55 (57 on 6 April 2028, unless you have a lower protected pension age).

The allowances for ISAs and SIPPs are separate. So if for example you use up your ISA allowance for the tax year and still have money left to invest you could save it in a SIPP.

Here’s a comparison of Fidelity's ISA and Fidelity's SIPP.


 Fidelity’s ISA

Fidelity’s SIPP

Your yearly allowance 


£40,000 - though you can’t invest more than you earn and there's a Lifetime Allowance of £1,073,100 (Learn more about pension allowances)

Key tax benefits

  • Tax-free growth

  • Tax-free income

  • Tax-free withdrawals

  • Tax relief on contributions, so for every £80 you invest, HMRC will add £20, or more if you pay higher tax rates

  • Tax-free growth

  • Withdraw up to 25% tax free cash, normally once you've turned 55 (57 on 6 April 2028, unless you have a lower protected pension age)
    Other withdrawals are taxed at your usual income tax rate

Ways to invest with Fidelity

Lump sum and regular savings

Lump sum and regular savings

Minimum investments with Fidelity

£25 a month / £1,000 lump sum

£20 a month / £800 lump sum*

*HMRC will add 25% to each payment or more if you pay higher tax rates

Key investments you can hold with Fidelity

Funds, shares, investment trusts, ETFs, cash

Funds, shares, investment trusts, ETFs, cash


Any time

Normally you have to wait until you are 55 (57 on 6 April 2028, unless you have a lower protected pension age)


UK residents age 18 or over

(We have a Junior ISA for under 18s)

UK residents age 18 or over

(We have a Junior SIPP for under 18s)

Could be used for

  • All sorts of savings goals, such as university fees, a house deposit or the cost of a wedding
  • Retirement savings to sit alongside a pension
  • Flexible, easy-to-access, rainy-day pot 
  • Saving for retirement
  • Providing an income for retirement
  • Estate planning, thanks to some additional tax advantages
  • A way to save where you can’t be tempted to take the money out

Our awards

We’ve been recognised by leading experts and independent customer reviews and have won awards this year for both Best Buy ISA and Best Buy Pensions.

Your 2022/23 tax allowances

Learn more about this year's pension and investment tax allowances, together with the latest tax rates.

Tax allowances 2022/23

How to get started

It’s quick and easy to open an ISA or SIPP online and you have until 5 April 2023 to use this year’s allowance. There are two ways to invest to make the most of it.

  • Set up a regular savings plan from as little as £25 a month
  • Invest a lump sum

Stocks and Shares ISA

A tax-efficient way to save and pay no income tax or capital gains tax on returns.


A tax-efficient way to save for your retirement.

Can't decide

Let our tool help you choose the account that’s right for you.

Already have an account with us?

If you haven't taken advantage of your allowances for this tax year you can top up your accounts by 5 April 2023.

Whether you're a beginner or an advanced investor, we can help you to find your next investment from the thousands on offer.

Don’t forget, if you’ve used your full pension and ISA allowances in a tax year, you can still save as much as you want in our Investment Account.

Need a little more help?

If you have more than £100,000 to invest our financial advisers can help you make the most of your money.
Call us on 0800 222 550 for a free no-obligation discussion about your needs.

Explore our financial advice service

Important information - Tax treatment depends on individual circumstances and all tax rules may change in the future. Withdrawals from a Junior ISA will not be possible until the child reaches age 18. You can't normally access money in a pension until age 55 (57 from 2028). This information and our guidance tools are not a personal recommendation in respect of a particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity's advisers or an authorised financial adviser of your choice. You should regularly reassess the suitability of your investments to ensure they continue to meet your attitude to risk and investment goals.