The ISA closing date approaches: taking advantage of your allowances

It might feel as though the year has only just begun, yet the month of March is already upon us! That means that spring is on the way. It also means that the Individual Savings Account (ISA) cut-off date of 5th April is fast approaching.

ISAs are tax-free savings accounts open to anyone over the age of 16 to deposit their savings each year. With appealing savings allowances, ISAs have become very popular with individuals throughout the UK intent on building a nest egg for their future.

As of the end of the 2017/2018 tax year, the full amount you can deposit in an ISA in one financial year is £20,000 per annum, up from £15,240 in the previous tax year. This limit will remain unaltered into the 2018/2019 tax year. However, as those on the ball will tell you, any tax savings are dependent on the amount you deposit into your ISA over the course of the tax year. Deposits cannot roll over from one tax year’s allowance to the next, meaning that you can’t ‘top up’ your savings in 2018/2019 using any unused portion of this tax year’s allowance. When it’s gone, it’s gone!

Taking full advantage of your ISA allowance is therefore a great way to save for your future. This is further supported by the fact that ISA allowances can be split across various financial products, including cash ISAs, stocks and shares ISAs, innovative finance ISAs and lifetime ISAs (LISAS).

Making use of an ISA allowance is generally one of the aspects of sound financial planning. ISAs, however, are just one of several ‘tax-wrappers’ available—meaning savers can ‘wrap’ their investment, shielding them from paying tax on all, or a portion, of their assets.

If you have any questions around this topic, please feel free to get in touch with us directly on 01789 263888 or email

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Levels of taxation may be subject to change and their value depends on the individual circumstances of the investor.