Following our theme of the seven deadly sins of tax planning, or in other words seven key things to make sure that you avoid prior to the 5 April 2019, this time we consider…forgetting to top up your ISA’s.
Over 10.8 million people contributed to an ISA last tax year. If you are over 18 and UK resident, you can contribute up to £20,000 to a stocks and shares ISA this tax year, and your investment will grow tax free.
For those under the age of 40, there is also the lifetime ISA or LISA. LISA allows you to contribute up to £4,000 from your ISA allowance each tax year, until age 50, and get a 25% bonus from the Government each year.
The money can be withdrawn tax free when purchasing an eligible first home or after age 60. Other withdrawals attract a Government charge.
For more information, speak to your financial advisor or contact Lesley Sutton on 01484 550037 or email firstname.lastname@example.org.