The best source of concise guidance on Individual Savings Accounts (ISA), is you Anstee & Co financial adviser, but here are the key areas for consideration:
Use your full annual Individual Savings Account allowance if you can- you can’t carry it into the next tax year.
Where possible, transfer existing investment’s which are subject to tax on any growth into a tax-free ISA.
Use your annual ISA limit to accumulate a tax-protected investment portfolio.
Your combined Individual Savings Account investment for 2016/17 and then 2017/18 could be a maximum of £35,240.
Having used your ISA allowance for the year, you might want to make sure that any spouse/civil partner uses their allowance too.
ISA and tax.
Why invest in a product that has no tax benefits when you can invest in another that offers tax efficient returns? That’s the beauty of ISAs. Each year you can save money without any tax being charged on any interest or dividends earned. If you don’t use your tax-free allowance within a tax year, that’s it. It’s a case of “use it or lose it”
What you can invest in?
The investment can be cash or shares or a combination of both. It is important to remember that what you invest in an ISA each year it will continue to accumulate interest or capital growth tax free for as many years as it remains inside your Individual Savings Account wrapper.
How much can you invest?
In the 2016-17 tax year, the maximum that can be saved per person in an ISA is £15,240. This can be held in a cash ISA or a stocks and shares ISA, or a contribution of both. The total invested cannot exceed £15,240.
To help you find the best ISA solution for you contact us today to arrange a free initial meeting with one of our expert financial advisers.
How Anstee & Co can help you with tax planning.
We are independent financial advisers. Our offices are based in London, Stamford and with the head office based in Kettering. Our financial advisers make use of meeting rooms in Bedford, Towcester, Northampton, Wellingborough and Warwick. We will also meet you at your home or office. We cover the following areas: Northamptonshire, Lincolnshire, Warwickshire and Bedfordshire.