2nd April 2015 Posted by - Financial Adviser in Derby
The end of the current tax year is almost upon us, have you maximised your ISA allowance for the 2014/15 tax year?
ISAs (Individual Savings Accounts) are a great, tax efficient way of saving, so here’s a few basic facts about ISAs;
- ISA cannot be held jointly, if two people wish to save together they will have to have an ISA each.
- The ISA tax year is exactly the same as the financial tax year i.e 6th April to the following 5th April
- The ISA allowance for the 2014/15 tax year is £15,000 this will increase to £15,240 for the 2015/16 tax year
- After the ISA tax year has ended you can no longer use that allowance and so effectively it will be lost forever, hence the importance of ensuring you maximise the allowance each tax year
- There are 2 types of ISA 1) Cash ISA 2) Stocks and Shares ISA
- You need to be 16 to have a cash ISA and 18 to have a stocks and shares ISA. You will also need to be resident or ordinarily resident in the UK to qualify
- Cash ISA are generally low risk and ideal for shorter term savings whereas a stocks are shares ISA can be of greater risk and should be considered a longer term investment
- There are different types of ISA available to suit different individual needs
These are just a few basic facts about ISAs however, please note that this information is not intended to provide any form of advice or guidance. Full advice should be sought before proceeding with any application to ensure that an ISA is right for you and your circumstances. For more information please don’t hesitate to get in touch.