ISA Allowance...Use it or lose it!

TIME IS TICKING. YOU CAN’T CARRY YOUR ALLOWANCE TO THE NEXT TAX YEAR, AND IF YOU DO NOT USE IT, YOU WILL LOSE IT.

Although your annual allowance of £20,000 can be used at any time during the tax year, the

deadline of 5 April 2018 helps to concentrate the mind and there is generally an increase in ISA investments at this time of year.

However, you do not have to wait. You can use your allowance at any time – and many would

suggest the earlier the better, particularly with Cash ISAs, as the earlier you open a Cash ISA, the more interest you will earn.

For Stocks and Shares ISAs, some people still attempt to ‘time’ an investment in and out of the market, although few have proved themselves adept at this type of market prediction.

An alternative approach is to ‘drip-feed’ your allowance on a monthly basis, so you invest at

different prices as markets fluctuate. This approach can help to smooth the return on your investment.

Regardless of how or where you decide to invest your money, you must do so before 5 April

2018. At the end of the tax year, your ISA allowance is gone.

The good news is that there’s still time to ensure you don’t miss out on your full allowance, so do give us a call if we can be of assistance.