The financial year ends on 5th April, so now is the perfect opportunity for you to review your savings and make full use of any available ISA allowances before the end of the tax year. It’s important to do this sooner rather than later, so you don’t miss out.
The annual individual ISA allowance for the 2024 to 2025 tax year is £20,000. This can be paid into a cash ISA or into an Investment ISA, or it can be split between the two. Your allowance refreshes with each new tax year.
This means that you can top up an existing ISA, or open a new one each tax year, up to a maximum of £20,000 and you won’t pay tax on the interest, on withdrawals or on any profits you make. These limits will remain in place until April 2030, so this is an excellent opportunity to make your money work harder in a tax-free environment.
If you haven’t reached your allowance limit for this year, it’s worth thinking about transferring some of your savings into your ISA (or opening one now) to make sure your money’s working as hard as it can. Your 2024-25 individual ISA allowance cannot be carried forward to the next tax year, so if you don’t make use of it before 5th April 2025, it’s gone.
With the end of the tax year approaching, speak to a financial planner who will help you review your current position and help to identify any ISA and other tax allowances you still need to fully utilise. You can call us on 01257 260011 or contact us via our website.
*Your circumstances and where you live in the UK may also have an impact on your tax treatment. Amber River True Bearing are not Tax Advisers.
