Take action now for this tax year
The current limit for this tax year is £15,240. You need to make sure that you have paid money into your Stocks and Shares ISA on or before 5 April 2017 to take advantage of this allowance. If you don’t use it, then it’s lost forever.
For the tax year starting 6 April 2017, you are entitled to a new annual allowance, meaning you can put in up to £20,000. By using both this year’s allowance and next year’s allowance you are entitled to £35,240 tax free investing over the next 6 weeks!
That is right over the next few weeks, you could shelter as much as £35,240 in an ISA, if you have that level of funds available. And as everyone aged 18 or over can put money into a Stocks and Shares ISA, this means couples could put in a combined £70,480. That’s quite a tax break!
ISAs aren’t just for the rich
Even if you can’t invest this much, we still think ISAs are highly attractive. If you focus on long-term investing even small amounts can grow substantially, given enough time.
So, even if you’re not worried about paying capital gains tax now, your future self may thank you profusely for thinking ahead.