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Did you know that the ISA deadline is coming up?

24/02/2015

The ISA deadline is catching up with us and will be here on the 5th April. Time is running out for you to make the most of your 2014/2015 tax efficient ISA allowance, as any tax-efficient savings allowance that is not utilised before the 5th April deadline will effectively be lost.

The ISA, which stands for ‘Individual Savings Account’, is a tax efficient savings plan that allows you to save a certain amount of money each year, tax efficiently. This can be done through either monthly premiums or lump sums.

You may be aware that the ISA has changed dramatically over the last twelve months. During the April 2014 Budget, Chancellor George Osborne increased the annual ISA allowance from £11,520 to £15,000 as of the 1st July 2014 and renamed the ISA as the ‘New ISA’!

So, until 5th April this year you will be able to save £15,000 in your ISA allowance. If your tax-efficient savings allowance is not utilised before the 5th April deadline, it will be lost. After this date all ISA allowances are reset at the beginning of each tax-year, 6th April.

If you have less than the maximum allowance allowed in your ISA at the moment and would like to make the full use of tax-efficient saving, you will be able to top up your ISA with your provider, via higher monthly instalments or lump sums, until 5th April.

2015/2016 Tax-year



As of 6th April 2015, when the ISA allowances reset, the actual amount that you can save over the next twelve months also increases to £15,240.
You can open an ISA if you are a UK resident and over 18 years old. There are also Junior ISAs, which are available to children under the age of 18 who live in the UK, and must be opened by a child’s parent or guardian on their behalf. The allowances on these will stand at £4,080 from 6th April, and they work slightly differently from ISAs.

The Chancellor also announced further changes to ISAs in the 2015 Autumn Statement. These changes involved widows and widowers, who are now able to inherit ISAs tax free. Previously ISAs lost their tax-free status upon the death of the owner.

If you would like any more information about ISAs, Junior ISAs and how you can open one, feel free to call our helpline today. Our advisers will also be able to talk you through the best ways of taking advantage of your ISA deadline, before 5th April. Call today on 0800 092 1245.


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