From their introduction on the 6th of April 1999 the tax efficient replacement for personal equity plans and tax exempt special savings accounts were introduced as an efficient way to save money for the future. ISA's or individual savings accounts were designed to provide a haven free of tax for deposit based accounts, collective investments and originally single company shares.
Individual saving accounts have come of age in the last few tax years giving you a tax free allowance of up to £11,520 per person each year (2013/14 tax year). Up to £5,760 of that can be saved in a cash ISA with the remainder investing in a not so aptly named stocks and shares ISA. In more recent years the Junior ISA has been introduced with an annual tax savings of £3,720 per annum per junior.
As with all tax planning the old adage of use it or lose it applies to your ISA allowances. Once the 5th of April passes any unused allowance cannot be reclaimed resulting in possible unnecessary income tax and capital gains tax levies.
Making use of your ISA allowance forms one of the principal objectives of any financial plan. At Romilly Financial we will ensure you make the most of your tax allowance whilst understanding your risk appetite and savings goal. Contact us for further information.