Our Blog page banner

New Tax Year, New ISA allowance

New Tax Year, New ISA allowance

With the current paltry interest rates, it is hard to get excited about the new ISA allowances which were announced in this year’s budget.

 

From April 6, the ISA allowance increased to £11,880, with the option to hold up to half, or £5,940, in a cash ISA savings account. From July 1, this can be topped up to £15,000 when the new NISA takes effect, which allows it all to be held in cash.

 

Is it worth even considering, when returns are so poor? There are those who believe that you should use it, not lose it. As there is a yearly allowance cap, the more you put in now, the bigger the tax-free savings pot you’ll have if and when interest rates recover. To maximise your potential rewards over the longer-term, you need to make the most of each year’s tax allowance.

 

Others believe there is no point, and are looking elsewhere for a home for their money.

 

What do you think?

 

Whether you are looking for long-term solutions or need advice now on making the most of all current tax-saving opportunities, we can help. Contact us now to find out more.