4 reasons why you should use your ISA allowance at the start of the tax year instead of the end


Most investors understand that when we invest to see our money grow, we usually do so over the longer-term. This means that our ‘not-so-secret’ ingredient when investing is time. So why then do many investors wait until the end of the tax year to utilise their annual ISA allowance? Lots of us know that the early bird catches the worm, but apparently not when it comes to our ISAs. 

You can now invest £20,000 for the 2019/20 tax year and choose between either a Cash ISA, Stocks & Shares ISA or a mixture of the two. There are also other types of ISAs including the Junior ISA and Lifetime ISA, but for now I’d like to focus on both the Cash and Stocks & Shares ISA types.

Here are four quick reasons why you should start maximising your ISA allowance today and not wait until March 2020:

1. You’ll invest over the full tax year

​When we invest for the longer-term, we do so knowing that we need time for our investments to hopefully grow and also to recover from any short-term market volatility and/or challenging market conditions.

By investing at the start of the tax year, your monies can benefit from any market growth throughout the tax year, rather than waiting until March next year and potentially missing out. It is important to remember that the value of your investment can, of course, go up or down.

2. ISAs are tax efficient in several ways

​Any gains made within an ISA are not subject to Capital Gains Tax, nor is any income you withdraw subject to Income Tax. This makes an ISA an attractive vehicle in which to invest.

You also retain the ability to transfer your ISA between Cash and Stocks & Shares at any time, without the amount that you transfer using any more of your ISA allowance. This gives you valuable flexibility in how you manage your ISA investments.

3. You’ll reduce your paperwork

Cash and Stocks & Shares ISAs don’t need to be declared on your self-assessment tax return, thus saving you the time and hassle of keeping records and statements, ready to include them the next time you sit down to submit your return.

4. You need to use it or lose it

Unlike some other tax allowances, once a tax year ends you can’t use any unused ISA allowance from previous years. So essentially, you need to either use it or lose it. Once it’s gone, it’s gone.

More information

And it really is that simple. If you’d like to learn more about your own options when it comes to making use of your ISA allowance, please contact Chris Moore, at Pinney Talfourd Wealth Management, today using the details below.

Remember that ISAs are just one of many different investment vehicles available to use in your long-term financial planning.

Chris Moore
01708 259577
chris@ptwealth.co.ukThis article was written by Chris Moore, Director & Independent Financial Adviser at Pinney Talfourd Wealth Management.

Disclaimer: This article is considered a marketing communication and as such, does not, and should not be taken to, include investment advice or a personal recommendation. The views and opinions expressed in this article may differ from those of Pinney Talfourd Wealth Management, it’s employees or its Directors. In writing this article, Pinney Talfourd Wealth Management has not assessed any investment objectives or financial situation in particular. Pinney Talfourd Wealth Management makes no representation and assumes no liability as to the accuracy or completeness of the content of this article, which has been prepared utilising publicly-available information. This article must not be reproduced without consent from Pinney Talfourd Wealth Management.

Pinney Talfourd Wealth Management is an appointed representative of Watson Moore IFA Ltd which is authorised and regulated by the Financial Conduct Authority and registered under FCA number 433008.

Pinney Talfourd Wealth Management Limited

Registered in England & Wales Number: 09827779

Registered Office: 54 Station Road, Upminster, Essex, RM14 2TU


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