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When is the ISA deadline? How to make the most of your tax-free allowance

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When is the ISA deadline? How to make the most of your tax-free allowance

SAVERS across Britain are rushing to add to their tax-free savings before the ISA deadline next week. But how can you make the most of your tax-free allowance?

When is the ISA deadline?

People must add to their tax-free accounts, known as Individual Savings Accounts (ISAs), before the deadline at midnight on Tuesday April 52016.

The date marks the end of the 2015/16 tax year. If savers miss the deadline, they lose their unused allowance for the past year.

What is your ISA allowance?

Each tax year Britons get an ISA allowance, which is the largest amount that they can save in cash and investment ISAs.

The maximum amount that can be saved before the end of the 2015/16 tax year is & pound; 15240.

Savings which remain in an ISA year-on-year will continue to reap tax-free benefits until withdrawn from the account.

When is the ISA deadline? How to make the most of your tax-free allowance

How much is the next ISA allowance?

The ISA allowance for the 2016/17 tax year remains the same at & pound; 15240.

From April June 2016 anyone who has an ISA or opens an ISA has a year to save up to this amount before April 52017.

The annual ISA limit is set to rise to & pound; 20000from April 2017 it was announced in George Osborne's 2016 Budget.

How to make the most of your ISA allowance

Up to & pound; 15240 can be put into a cash ISA or a stocks and shares ISA. Alternatively it can be split between the two types of ISAs.

Cash ISAs are simple savings accounts which do not tax interest and offer a low-risk return on cash.

The stock market offers higher potential rewards than a cash ISA but it comes with more risk. Here is advice on the best ISA for you.

First-time buyers can save for a deposit in a Help to Buy ISA. From April 2017 young people can save for their first home and retirement using the Lifetime ISA.

How to open an ISA account?

People can get an ISA from a range of banks, building societies, credit unions, friendly societies and stock brokers.

Savers can even open an ISA account online as long as they have their national insurance number and money ready to transfer into the ISA.

Anyone aged over 16 can open a cash ISA and anyone over 18 can open a stocks and shares ISA. There are also Junior ISAs for children.

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31 March 2016, 19:22