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Making the most of your tax-efficient allowances

  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.

Every tax year, on 6 April, you get new ISA and pension allowances. These have valuable tax benefits that are designed to encourage you to save what you can and help you make the most of the money you put aside. Here’s a comparison of the Fidelity ISA and Fidelity Self-Invested Personal Pension (SIPP) in the 2021/22 tax year.

 

Fidelity ISA

Fidelity SIPP

Your yearly allowance 

£20,000

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

    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

Withdrawals 

Any time

Normally, you have to wait until you are 55 

Eligibility

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
  • Estate planning, thanks to some additional tax advantages
  • A way to save where you can’t be tempted to take the money out

 

Want to know more about tax? 
Download our helpful summary that outlines this year’s pension and investment tax allowances, together with the latest tax rates.  Get our 2021/22 tax guide today

Why invest in a Fidelity ISA and SIPP?

  • Wide investment choice (funds, shares, investment trusts and ETFs) 
  • Low cost, so you keep more of your money
  • Support with decision making including expert insights and investment selection tools

Plus, it’s reassuring to know we’ve been looking after people’s savings since 1969 and manage more than £106.9 billion assets* for over 2.5 million investors.

*Assets under administration across United Kingdom, Continental Europe and Asia Pacific. Source: Fidelity International 31 December 2020

Why a Fidelity ISA?

A tax-efficient way to save.

Why a Fidelity SIPP?

A tax-efficient way to save for retirement.

Can’t decide?

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

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

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Award-winning

With our award-winning ISA and SIPP you choose what to invest in and when. You’ll also benefit from expert insights, videos, planning calculators; portfolio analysis and comparison tools and plenty of online guidance to help you decide where to invest.

Need help?

Call our UK & Ireland-based team

0333 300 3350

Weekdays 9am-5.30pm & Saturdays 9am-2pm

Important information - Tax treatment depends on individual circumstances and all tax rules may change in the future. You can't normally access money in a pension until age 55. This information and our guidance tools are not a personal recommendation in respect of a particular investment. If you need additional help, please speak to a Fidelity adviser 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.