It has been a busy year, with war, rate rises, inflation and worries about recession affecting almost all of us.
Many of us will be glad to say goodbye to the 2022/23 tax year, with the hope of better times to come.
But there is still time to make sure you take full advantage of one of the key aspects of any tax year – your ISA allowance.
Your ISA allowance is running out
ISAs form the basis of most people’s investment planning, for a very good reason. When you put money into an ISA, you put it out of reach of the taxman. Unlike virtually any other kind of investment, there is no tax to pay on cash, stocks and shares or anything else held in an ISA.
With nothing being subtracted by the taxman, the interest or profits you earn could add up faster. And, when the time comes to cash in your ISA, there will be no income tax or capital gains tax charged.
This means that ISA investment can be so rewarding, the government puts a limit on what you can invest each year. This is your annual ISA allowance.
Savers and investors can put up to £20,000 in their ISAs in 2022/23. You can invest the whole amount in one ISA or split it across different funds.
But your allowance is running out. If you don’t use it before 5th April, you will lose it. That means losing the chance to shelter £20,000, and all the profits it can generate – from tax.
Use your ISA allowance carefully
Time is running out for your 2022/23 allowance, and you need to act fast. Most providers will take days or even weeks to set up a new ISA.
But there are many types of ISA, and getting the one that is right for you, your money and your plans for what you want to do with it is vital.
Are you looking for security, with predictable if modest growth? You might want to consider a Cash ISA.
Of course, returns on Cash ISAs, although improving fast can still be outpaced by inflation. Investing in a Stocks and Shares ISA could offer the potential for greater returns, although you would forgo the security of the governments savings protection scheme.
There are many Stocks and Shares ISAs to choose from, allowing you to tailor your investment to your appetite for risk and your need to grow your wealth.
So if you are looking to keep management costs low, and ensure that as much of your money as possible is invested to work for you, we find the most suitable option for you and your circumstances.
Get expert help to make the most of your ISA allowance
The clock is ticking, and you probably don’t have the time to do all the research you need yourself. Fortunately, at Continuum we can help you find the ISAs with the investment approach that best matches your own and help you through the maze of performance comparisons and costs, projections and plans.
Call us on 0345 643 0770, email us at [email protected] or contact us directly here. But please, do it today.
The value of your investment can go down as well as up and you may not get back the full amount invested.
The tax treatment depends on the individual circumstances of the investor and may be subject to change in the future. We recommend that the investor seeks professional advice on personal taxation matters.
The Financial Conduct Authority does not regulate taxation advice.
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to suitable investment strategy, you should seek independent financial advice before embarking on any course of action.
