With this year’s ISA deadline fast approaching, here’s our essential guide to ISAs.
Each year, we all have an ISA allowance which we can use to shelter our savings and income from tax. This tax-efficient allowance currently stands at £20,000.
However, we need to use this allowance before the end of the tax year, as it doesn’t roll over to the next tax year. This means that, for 2023, you need to use it before 5 April 2023 or lose it forever.
To help ensure you don’t miss out, we’ve drawn up our essential guide to ISAs, explaining the history behind them and what your savings options are.
ISAs, or Individual Savings Accounts, were first introduced in 1999 by the then chancellor Gordon Brown. The aim was to encourage more people to save for the future and since their introduction, ISAs have grown to become one of the UK’s most popular savings products.
A primary goal of the ISA was to simplify the process of using savings products. ISAs replaced the Personal Equity Plan (PEP) and Tax-Exempt Special Savings Account (TESSA). Throughout the development of ISAs, successive governments have tweaked and redesigned different aspects of them, including the addition of new products and amended limits.
The changes mean that choosing the right ISA product for you while understanding how to make the most of your allowance isn’t as straightforward as it was previously.
For more details about ISAs and the current options available to you, please click on the link below, in order to read or download our comprehensive ISA guide.
Alternatively, why not give us a call to discuss your savings requirements?