Spring into action - your 2016/17 ISA allowance is now available

As we enter a new tax year, you have a great opportunity to protect your money from the taxman.  The overall limit remains the same as last year, providing each individual adult with an ISA allowance of £15,240 to use before 5 April 2017, when the allowance is due to increase to £20,000.

Generally, we continue to view ISAs as a vital component of client portfolios and the sooner you invest this tax year’s contribution, the sooner your tax efficient investment begins to work for you.
The value of ISAs has been further highlighted in the Chancellor’s recent Budget with a new ‘Lifetime ISA’ being launched for those aged 18 to 40 next April.  We have also witnessed the launch of a ‘Help to Buy ISA’ in December 2015 and a new ‘Innovative Finance ISA’ becoming available from April 2016 for investors who are comfortable lending their savings to people or businesses looking to borrow money without using the services of a bank.
ISAs now offer more flexibility than ever before, enabling you to save tax efficiently to provide growth or income, which you can withdraw whenever you need it.  For the first time, some providers will enable you to withdraw funds from an ISA and replace them into the same policy in the same tax year, without counting towards your annual allowance.
Despite the new features, ISAs are still relatively simple and you don’t even have to declare them on your annual tax return.  You can transfer your savings from a cash ISA into a stocks and shares ISA and vice versa, which, depending on your circumstances, may be particularly beneficial whilst interest rates are so low.
At CFM, we aim to provide the highest quality independent financial advice to our clients.  In seeking to provide you with financial ‘advice for life’ we continue to recommend taking full advantage of these tax efficient wrappers where possible.  If you have any queries relating to your investments or would like to discuss maximising your 2016/17 ISA allowance, please do not hesitate to contact us.

Posted on May 3rd 2016

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