Every tax year the government gives each of us an ISA allowance. This year the allowance is £20,000. The catch is that you have to use this allowance in the current tax year, that’s the 5th April 2019. Or you lose it.
ISAs are tax free savings. There is no capital gains tax to pay, no tax on UK income and you don’t even have to list them on your personal tax return. The 5th April may seem a long way off, but it isn’t. Especially if you want to take a look under the bonnet of your existing ISAs, which we strongly recommend you do, to ensure they are still performing well for you.
The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested.
Investors do not pay any personal tax on income or gains, but ISAs do pay unrecoverable tax on income from stocks and shares received by the ISA managers.
At Four Oaks Financial Services our Financial Advisers provide financial advice local to Lichfield and are qualified to give advice on ISAs. Talk to your financial adviser about the difference between Cash ISAs or Stocks & Shares ISAs.