Don’t forget to top up your ISA before 5th April!

28 February 2017

Save up to £15,240 tax free!

Using an ISA is an efficient and tax free way to grow your savings. Each tax year, you can invest up to £15,240 completely tax free. The benefit of an ISA comes in ensuring that you utilise your entire ISA allowance by investing your maximum amount.

Invest before 5th April

As the current tax year 2016/17 ends in just a few weeks’ time, if you have not yet used your entire allowance now is the time to do so. If you miss this fast-approaching deadline, any money paid in after the 5th April counts towards next year’s allowance. “Put simply,” comments Absolute Wealth’s Simon Harnaman, “If you don't use it, you'll lose it.  You can't roll over ISA allowances from year to year - you have until 5th April 2017 to put money in, no exceptions.”

Watch your savings grow

ISAs are very flexible way of investing, payments can be made in the form of lump sum or regular payments, allowing the option of taking a payment break in leaner months, or topping up when feeling flush. In the current climate with low interest rates, investing in an ISA could yield a higher return than simply leaving the equivalent cash in the bank. Unlike some long-term investment schemes, money can even be withdrawn from an ISA without having to close it. 

“There is such a huge range of ISA products now available on the market, the choice of which one to invest in can be quite daunting,” concedes Pete McBride. “At Absolute Wealth, since we are independent financial advisers, we can review the all the ISA products on the market to help you decide what sort of ISA would suit your needs, be it a cash ISA or a stocks and shares ISA.

New ISA Allowance for 2017/2018

From the start of the new tax year, 6th April 2017 everyone starts with a with a new allowance which has been increased to £20,000. “By raising the annual ISA allowance from the start of the new tax year, the Government has effectively given savers an additional £4,760,” notes Pete.  “In the forthcoming months, we anticipate that we will be busy advising clients how they make use of this supplementary tax free saving to potentially reduce the tax they pay on their savings and investments.”

Here to help!

At Absolute Wealth, we recognise that there are so many choices about ISA’s including whether you should make a lump-sum investment into your existing ISA or open a new one. If you like to discuss how and where to invest in this tax year or want to plan for next year’s tax year, please call the office on 0117 907 1965 to speak to either Simon or Pete, alternatively click here to use the enquiry form.

Categories: Tax