The ISA deadline is fast approaching, and time is running out for you to make the most of your 2014/2015 tax efficient ISA allowance.
The ISA and Junior ISA are tax efficient savings plans that allow you to save a certain amount of money in them each year, through either monthly premiums or lump sums.
Earlier this year, during the April 2014 Budget, Chancellor George Osborne announced significant changes to the ISA. Mr Osborne increased the annual allowance from £11,520 to an impressive £15,000 as of 1st July and renamed the ISA to a ‘New ISA’! The Junior ISA also went through the same update and saw its annual allowance also increase to £4,000.
So, with all those changes, which have taken place over the past twelve months it’s worth noting that any tax-efficient savings allowance that is not utilised before the 5th April deadline will effectively be lost. After this date all ISA and Junior ISA allowances are reset at the beginning of each tax-year, 6th April.
If you currently have less than the maximum allowance allowed in your ISA and would like to make the full use of tax-efficient saving, you can top up your Shepherds ISA or Junior ISA via our website or by calling us on 0800 526 249.
As of 6th April, when the ISA allowances reset, the actual amount that you can save over the next twelve months also increases to £15,240. The Junior ISA allowance will rise to £4,080.
If you don’t already have an ISA for yourself or a Junior ISA for your children, then you can open one with Shepherds Friendly by applying online through our website. To open an ISA you must be a UK resident and over 18 years old. Junior ISAs are available to children under the age of 18 who live in the UK, and must be opened by a child’s parent or guardian on their behalf.
The Shepherds ISA can be opened with a monthly premium of £30 and/or with an initial lump sum of a minimum of £500 and then £100 at a time thereafter. Similarly, the Junior ISA can be opened from as little as £10 a month, and/or with an initial lump sum of a minimum of £100 and then £10 at a time thereafter.
The Chancellor also announced some more changes to ISAs in the 2015 Autumn Statement. Widows and widowers are now able to inherit ISAs tax free. Previously ISAs lost their tax-free status on death.