Believe it or not, the tax year end is not so far away. Tuesday 5th April looms menacingly on the horizon … how time flies! It seems like only yesterday that we were doing this dance, even though I’m sure that for many of you, the last year has felt like a particularly long and tough one. You can count me among your ranks.
As that time of year approaches, we will be frequently reminding you of the prudence in making the most of your ISA allowances for the current tax year. If you haven’t thought about this yet, please consider this your first call to action!
As a reminder, for the 2021/22 tax year, the allowances are £20,000 (per individual) for subscriptions into ISAs, and £9,000 for subscriptions into Junior ISAs (JISAs).
So that this is less of a pure reminder and somewhat informative, I will let you in on a lesser-known fact about ISAs and JISAs … 16 and 17-year-olds are able to hold both a JISA and an ISA simultaneously.
Not only are they entitled to hold both a JISA and an ISA, they are also entitled to BOTH of the annual allowances that come with them. This means that the amount that can be saved into ISAs on behalf of these teenagers increases from £9,000 per year to £29,000 per year (all tax-free of course).
If you are looking for ways to set more funds aside for your children (or grandchildren), this might be one of the best ways to do it. I know that some of you have utilised this benefit already.
So, whilst we have a little time before April hits us, please make sure that any intended ISA top-ups are made in good time to use up those allowances for the current tax year. We would ask that all tax-year-end-sensitive investments are made by 25th March 2022.
We are only an email or phone call away if you need any help.
You can read more articles about Pensions, Wealth Management, Retirement, Investments, Financial Planning and Estate Planning on our blog which gets updated every week. If you would like to talk to us about your personal wealth planning and how we can make you stay wealthier for longer then please get in touch by calling 08000 736 273 or email email@example.com
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