As we move firmly out of the old tax year and into the new, now is a great time to start thinking about your Individual Savings Account (ISA).
Between now and April 2018, you can pay a maximum of £20,000 into your ISA, which will remain capital gains and income tax-free for life.
And with the introduction of the new Lifetime ISA (LISA), there are now great opportunities for self-employed business owners to save for retirement.
But individuals can also look to the future in other ways, for example, by saving on behalf of your children.
Children have a ‘junior’ ISA allowance of £4,260. But if they are between 16 and 17, they can also begin saving into an adult ISA, meaning your children could each put away up to £24,260 between now and April next year.
The ISA Allowance limit is often left forgotten until last minute reminders. However, by this point it is usually too late to invest the whole £20,000, let alone fulfil your children’s allowances.
You also run the risk of missing out on an entire year’s worth of stocks and shares or interest growth.
Experts recommend ‘drip feeding’ your ISA throughout the year, putting away cash each month in order to make full use out of the tax advantages.
Too much to take in?
We’ll be happy to answer any questions you might have about your Individual Savings Allowance.
As a firm that specialises in retirement planning, our goal is to ensure that you will be confident in what the future holds for you.
What we can do for you:
- Inheritance Tax planning
- Capital gains tax implications
- Wills advice
- Income provision in retirement
- Business exit strategy and succession planning
- Asset protection
Remember, it’s never too early to plan for your future. Contact JW Hinks for more information today.