Financial Advice

You still have time to make the most of your ISA allowance.

Use your ISA allowance before 6th April ….. or lose it!

January 2018

You still have time to make the most of your ISA allowance. However, once it's gone, its gone! You are not able to carry it forward or transfer it to someone else.

It is also worth remembering that you can transfer from an existing cash or stocks and shares ISA at any point if you wish to do so. The important thing is that you maximise your tax allowances during the year.

Your ISA Tax Savings - The Facts!

It is worth reviewing the substantial tax benefits that ISA's can offer. To start, you don't pay income tax or capital gains tax on the returns from an ISA. In addition, you are not required to include ISA's in your tax return, nor any income or growth from them. Finally, your money can continue to benefit from these tax advantages as long as it remains invested in an ISA.

Retirement Planning and ISA's

Building up a pot of money in ISA's is potentially a wise move for when you retire. As you may already know, the pensions freedoms mean you may have more  options on how you can access your pension. However, you will pay income tax at your marginal rate on any withdrawal's you make from your pension, after you have taken any tax-free cash. So drawing a smaller income from your pension and topping it up with income from a tax-efficient ISA could help reduce the tax you pay when you retire.

Pension Contributions

Many clients also use this time of year to review their pensions. If you wish to ensure you are making of your allowances we can:

  • Check that you are still investing in the most tax efficient mix of assets to achieve your financial goals
  • Explore different pension planning strategies
  • Help you to maximise your annual pension allowance (potentially up to £40,000)
  • Review your situation to take full advantage of unused allowances from previous years (carry forward relief)

Contact us to make the most of your allowances

Whilst the deadline is fast approaching, we still have time to discuss the tax allowances available to you. many clients are taking the opportunity to review their financial arrangements. If you would like to do the same, please give us a call on 01473 408422. 

Tax rules may change in the future. Tax treatment depends on your personal circumstances.