The one thing about tax years is they end. Every April.
Something else ends with them: that year’s ISA allowance. All gone. Forever. Tax saving opportunity missed.
After all, the taxman does not want you to have too much of a good thing.
So why are ISAs such a good thing?
An ISA – or Individual Savings Account – is a way of keeping your savings pot safe from the taxman. Save into one and no matter whether you are a basic rate or higher rate taxpayer you don’t pay income tax on the interest.
However, there are ISAs and there are ISAs. One might be better for you than another might. In addition, you can save in a cash ISA or a stock-and-shares ISA. Alternatively, you could save in a bit of both.
Let us help you before this year’s alliance is gone
The value of the investment can go down as well as up and you may not get back as much as you put in. Tax treatment depends on individual circumstances. Tax treatment rates and allowances are subject to change.
For stocks and shares ISAs investors do not pay any personal tax on income or gains, but ISAs do pay unrecoverable tax on income received by the ISA managers.