Save more tax by not waiting until the end of the tax year to use your ISA allowance and making your ISA investment now. There’s currently around 9 months left of the tax year in which you can attract tax free returns. The earlier you make your ISA contribution the more tax you will save!
We have just recently updated our Guide to Individual Savings Accounts (ISAs). It’s a neat guide to explain the different types of ISAs available now and from April 2017, and how each one works.
Bed and ISA
If you don’t have the capital on deposit and have investments which are in taxable investment accounts then it is possible to do a Bed and ISA. The idea is simple: you sell your non-ISA investments and then use the proceeds to buy them back immediately, but this time within your ISA using your annual tax-free allowance, meaning the assets are out of reach of the taxman.
Don’t forget CGT
You need to consider any Capital Gains Tax (CGT) that might become due when selling a taxable investment however each individual has a CGT allowance of £11,100. Any investment gains above this amount will be taxable, at either 10% or 20% dependent on your marginal rate of tax
So please get in touch with one of our consultants who are on hand to guide you through making the most of your tax free allowances.