Beat the ISA Deadline

Time is creeping away and unless you use your £20,000 ISA allowance before the 5th April you will lose it for this tax year.

It’s a harsh deadline and we are only too aware that there is only a finite amount of time until the 5th of April, which Is why at Jane Newman Financial Planning Ltd we have been contacting our investors who have not used their entire allowance to ensure that they have had the chance to do so.

What are ISAs?

An ISA allows you to save cash and have instant access when you need it so that you can plan your finances for the short term, perhaps you are saving for a holiday, car or house deposit. For your long-term financial goals, you can invest in an ISA for the future.

There is a limit that is put on your ISA each tax year. For 2021/22 this allowance is £20,000 and you have until midnight on 5th April 2022 to use this allowance. If you don’t use it, you will lose it. The allowance can’t be carried forward into the following year. This is why we want to ensure that all our clients have had the opportunity to make the most of this tax allowance.

Don’t worry – when the new tax year starts on 6th April 2022 your allowance starts again and you will have another allowance of £20,000 for 2022/23. If you didn’t use it in the last tax year, we could help you to look at ways to ensure that you do so in the new tax year.

The two ISA’s that we most commonly advise on are below however, there are others available.

  1. Stocks and Shares ISA – this is a tax-efficient, long-term investment where you can save your money in shares, government bonds and property. The benefit of this is that you can do this without paying any capital gains tax or income tax on your money.
  2. Junior Stocks and Shares ISA – this has a different tax allowance for 2021/22 of £9000. The account can be opened by the child’s parent or guardian and once open, anyone can contribute to the account. The child can gain access when they turn 18.

If you would like to make the most of your ISA Allowance before it’s too late, please get in touch with us and we will be happy to offer you guidance, 01905 779193.

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