5th April 2017
Wednesday 5 April is the final day savers can contribute to an ISA before the allowances are reset for the new tax year.
Individuals can save up to £15,240 in 2016/17 across cash, stocks and shares and innovative finance ISAs. The annual allowance for a Junior ISA is £4,080 for 2016/17.
The limits for 2017/18 are:
- £20,000 for adults
- £4,128 for Junior ISAs.
The new tax year will also see the introduction of a new type of ISA – the Lifetime ISA.
A Lifetime ISA is available to adults under the age of 40. Individuals are able to contribute up to £4,000 a year and receive a 25% state bonus.
Funds, including the bonus, can be used to purchase a first home once the account has been open for a year. Funds can be withdrawn from the age of 60 for any reason.
If the funds are used for other purposes, the government bonus is lost and the fund will be subject to a 5% exit charge.
Contact us to discuss your saving strategy.