The ISA was introduced 20 years ago in April 1999 and, in that time, £8.74trn has been placed in the savings vehicle, while an estimated £30bn has been saved in income tax, according to Hargreaves Lansdown.

Commenting, Hargreaves Lansdown personal finance analyst Sarah Coles said: “With an economic Brexit slowdown and tax rises looking likely, it’s never been so important to take advantage of your ISA allowances and protect your savings and investments from tax forever.

“They’re [ISAs] a first port of call for the vast majority of investors, and a valuable tool for savers – particularly higher rate taxpayers and those who are hoping to build large cash balances. They form the foundation of millions of portfolios, and will continue to do so for another 20 years.”

Coles added that, while ISAs have “evolved substantially for the better” with increased allowances, better tax breaks, flexibility, ISAs with government bonuses and more investment options, they are “not perfect”.

“Given how the number of ISAs has expanded over the past few years, they are crying out for streamlining and simplification to help people get to grips with the benefits of ISAs without being confused into paralysis by the proliferation of choice,” the personal finance analyst concluded.

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