Can you please recommend an ISA or investment of up to £40,000?

ISA or investment of up to £40,000 as I’ve no pension and can’t afford to buy a property at 51

Hi Emma,

An ISA would be a better starting point than a general investment account because they are tax-efficient (both the growth and income generated are tax-free).

You can invest up to £20,000 per tax year into any form of ISA, so you could invest £20,000 now and the remaining £20,000 after 6th April.

You state that you don't have a pension. That might also be a suitable investment for you because you receive 20% tax relief (a supplement paid into your pension by HMRC). They also grow free of tax. Unlike ISAs any income you receive may be subject to tax but you can take 25% of the fund tax-free at retirement (age 55 at the earliest).

Because you have no pension in place, you can contribute up to the lower of 100% of your earnings into a pension or £40,000 each tax year.

I have written an article comparing ISA and pensions here: https://neliganfinancial.co.uk/whats-better-a-pension-or-an-isa/

I hope this helps.

Andrew