Review Your ISA Allowance

Review ISA and pension allowances before 5 April – our financial advisers

Wednesday 28 March, 2018

Tracy Dove, Thomas Oliver’s North London and Essex Financial Adviser and Financial Planner, recommends you check your pension and ISA allowances in the 2017/18 tax year.

Individual ISA allowance – £20,000                               

You can invest the whole of your individual ISA allowance of £20,000 in a Stocks & Shares ISA before April 5th 2018, or up to £20,000 in a cash ISA, with the balance invested in a Stocks and Shares ISA. A couple can invest £40,000 in their ISA’s in the tax year 217/18. Remember any withdrawals from an ISA are not subject to capital gains tax or income tax. If you have a child under 18 who does not have a Child Trust Fund you should be eligible to open a junior ISA for them worth £4.128 in the April 2017/18 tax year.

Make use of your pension allowance for the 2017/18 tax year

If you are a UK taxpayer in the 2017-18 tax year you will normally be able to claim tax relief on pension contributions up to 100% of your earnings or an annual allowance of £40,000, whichever is the lower figure. From 6 April 2016, individuals who had ‘adjusted income’ (total taxable income including all pension contributions) of greater than £150,000 in the tax year had their standard annual allowance (£40,000) for that tax year restricted so for every £2 of income they earned above £150,000, was reduced by £1 with the maximum reduction at £30,000. 

Personal pensions

You can set up personal pensions for members of your family who do not work or who are under 18. Contributions of up to £2,880 (£3,600 gross after pension tax relief is reclaimed) can be made by, or for, all UK residents including grandchildren or children.’

Tracy Dove, Financial Adviser and Retirement Planner in North London and Essex said: ‘There are only a few weeks left until the new tax year so we recommend all our clients review their finances now to ensure they make use of their ISA and pension allowances for the 2017/18 tax year. When we do client financial reviews we always recommend that our clients make use of all their allowances and plan their finances tax efficiently. If you require financial advice regarding your ISA and pension allowances please call a member of our financial planning team on 01707 872000.’

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