Reminder: Your annual Individual Savings Account (ISA) allowance is about to be reset
As we approach this year’s Budget on 16 March and the end of the current tax year on 05 April, it is always useful to take a look at the ISA situation and introduce a gentle reminder that this year’s contribution opportunity will soon be over.
ISAs continue to be a positive ‘tax wrapper’ for many people. Whilst individual circumstances will differ and they may not be suitable in all cases, they do provide attractive tax relief on your investments.
With that in mind, it is always worth reviewing your ISA contribution status at around the turn of the tax year. The amount you can contribute towards an ISA is limited to a finite amount each year. There is no ability to ‘roll over’ any unused portion of your ISA allowance to the next tax year, making it a true ‘when it’s gone, it’s gone’ tax benefit.
For the current tax year 2015-16 the ISA allowance is £15,240. This can be split in any way between a Cash ISA and a Stocks & Shares ISA. If you are unsure whether you have used this limit, how much of the limit you have used, or whether you should be contributing more to your ISA before the 05 April 2016 deadline, then please feel free to contact your Adviser.
The new ISA allowance, which begins on 06 April 2016, is also set at £15,240. This is because, after raising the limit several times over recent years, the government has elected to link future ISA allowance increases to the rate of inflation. As this has been at very low levels in the UK for some time now, the ISA allowance for 2016/17 will remain unchanged.
If you require any formal advice on ISA investment, or anything else related to your finances, then please do contact us here.
This article is for your general information and use only and is not intended to address your particular requirements. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation.
Information is based on our current understanding of taxation legislation and regulations. Any level and bases of, and reliefs from, taxation are subject to change.
The value of investments and income from them may go down. You may not get back the original amount invested. Past performance is not a reliable indicator of future performance.