Shelter your money from the tax man...

The Individual Savings Account (ISA) is a rare opportunity which the Government offers you to shelter your money from the tax man. For every pound you put in, you pay no further personal tax on any profits earned and do not even have to declare its existence to the tax man. This year, you can invest up to £7,200 - or, if you are over 50, up to £10,200. However, as the year end - and then tax year end - start to creep up on all of us, you need to make sure you act or you lose this year's opportunity forever.

Of the £7,200 (£10,200), up to £3,600 (£5,100) can be invested into cash - on deposit with a bank or building society or via cash funds. The rest can be invested in the much more volatile world of stocks and shares - or a funds of stocks and shares, the latter of which will at least spread your risk a bit further given that the value is at risk in this area and it is possible you may not get back the amount you originally invest.

ISAs are available for lump sum investment but also for regular savings. Whatever you choose to do, however, the deadline is approaching and you therefore need to start planning to make sure you can take full advantage. Of course, you do not have to use the whole allowance - but if you can, or if you have investments elsewhere that could be transferred over, sheltering them within an ISA does provide a more tax efficient way to hold on to any gains you do make.

Please note: the exact tax benefits of ISAs vary depending on your circumstances and are subject to change.