Individual Savings Accounts (ISAs) have been a staple of tax-efficient investing for over two decades. Offering tax-free growth and withdrawals, ISAs allow individuals to invest up to £20,000 per tax year, making them an essential part of a well-rounded financial plan.
Use It or Lose It
Unlike pension allowances, ISA allowances do not roll over. If you don’t use your full allowance within the tax year, it’s gone for good. To make the most of your tax-free savings, any investments need to be arranged before the end of the tax year.
Additionally, most platforms set internal deadlines well before the 5th April cut-off. Many providers schedule their final ISA contribution deadlines around 23rd March to allow for processing times and BACS payment delays.
Is an ISA Right for You?
ISAs are best suited for medium to long-term investments, typically those intended to be held for five years or more. While funds can be withdrawn at any time without penalties, investment values can fluctuate, meaning you may get back less than you originally invested, particularly in the short term.
Getting Started
Opening or topping up an ISA is simple. Contributions can be made as a lump sum or through regular monthly payments, and accounts can be set up in a matter of minutes. However, to ensure your funds are processed in time, we recommend taking action before Wednesday 23rd March.
If you’d like to take advantage of your ISA allowance before the deadline, contact your Wealth Strategist today.
