As the Tax Year End is approaching, consider making the most of your ISA and pension allowance and invest by 5th April 2020. If you have managed to stay organised from 2019 through to now, then well done! If you need to do some last minute planning, we are here to help.
Tax payers only have a few weeks with the budget on the 11th March and the end of the UK tax year on 5thApril 2020. It’s important to maximise your allowances for your ISA and pension.
With a cash ISA or stocks and shares ISA you can save/invest up to £20,000 a year tax free. And don’t forget the children who can save up to £4,368 this year in a junior ISA for each of your children and grandchildren up to the age of 18.
Junior ISAs are a great way to pass on wealth minimising the impact of inheritance tax.
With a pension, you can pay in a maximum of £40,000 a year. However, with a pension, if you don’t manage to utilise your allowance, you may be eligible to ‘Carry Forward’ for the next 3 years. Carry Forward allows those who utilise their annual allowance in a particular tax year to carry forward unused allowance from the previous three tax years.
If you don’t have an ISA or pension but wish to open one, feel free to contact us for any advice in a no obligation consultation.
Getting help to undertake a review is the first step in giving you the best chance of maximising the tax benefits of your ISA savings.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select, and the value can therefore go down as well as up. You may get back less than you invested.
An investment in a Stocks & Shares ISA will not provide the security of capital associated with a Cash ISA.
The favourable tax treatment given to ISAs may not be maintained in the future as they are subject to changes in legislation.
The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.