Whilst I know that some of you property investors want to keep your cash to fund cheeky offers, as the end of the tax year draws ever closer just a reminder to make sure you have used your full ISA allowances. As a reminder here are the benefits at a glance:
- Shelter an investment of up to £10,680 from tax
- ISA limits increase annually in line with inflation (RPI)
- You pay no capital gains tax on the returns from your ISA
- No further income tax to pay
- You don’t have to mention ISAs on your tax return
- You don’t need to hold an ISA for a fixed term (although a Stocks and Shares ISA should be regarded as a long-term investment)
Anyone over the age of 18 who is a UK resident can invest in a Stocks and Shares ISA.
As ‘individual’ accounts, money that is to be invested in an ISA must belong to the person making the application, but a married couple can each have their own ISA and shelter up to £21,360 between them.
Great advice Iain, I would also add – shop around each year some companies allow movement of existing ISA’s into theirs when opening an account for the present year and give a bonus 1st year on the complete amount! (Did this last year and am looking to do it again when the year is up) – just check you don’t have to keep it there longer to get the rewards.
Yes it alwyas pays to shop around and not just expect your current provider to be offering the best deal.