April 5th Deadline Have you used your ISA allowance?

Use your ISA and pension allowances for the 2018/19 tax year

Tuesday 26 March, 2019

Thomas Wheatley, Thomas Oliver’s Cheshunt based Financial Adviser and Financial Planner, recommends you check your pension and ISA allowances in the 2018/19 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 2019, 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 2018/19. Remember any withdrawals from an ISA are not subject to capital gains tax or income tax. 

Make use of your pension allowance for the 2018/19 tax year

If you are a UK taxpayer in the 2018-19 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.’

James Ashaye, Financial Adviser and Retirement Planner in Cheshunt and London, Hertfordshire 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 2018/19 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.’

Please note: The value of investments can fall as well as rise. You may not get back what you invest. The Financial Conduct Authority does not regulate Tax advice, Estate planning or offshore investments.

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