The new ISA allowance for the tax year 2017/18 is now in force.
An ISA (Individual Savings Account) is a tax-free way to save or invest.
As of April 6, 2017 the ISA limit for this tax year is £20,000, meaning you can pay up to £20,000 into one ISA account (or across multiple ISA accounts) tax-free.
There are four main types of ISA: cash ISA, Help to Buy ISAs, innovative finance ISAs and stocks and shares ISAs.
“The ISA allowance is set by the government each year, so the allowance doesn’t roll over to the next tax year, so if you don’t use it you will lose it,” said Peter Way-Rider, tax manager at Ellis & Co.
“To gain maximum benefit from your ISA you should open it at the start of the tax year (April 6), failing that as close to this date as you can.
“You can open multiple ISAs but cannot pay in more than £20,000, every individual has the right to open an ISA, the Junior ISA allowance for 2017/18 is £4,128.”
For further information on ISAs or any other tax issue contact Peter Way-Rider on 01244 343504.