ISAs – reducing your tax bill
The tax year end is close approaching and I am sure that you don’t relish the news that you owe the tax man a large chunk of money. Is it time to give your financial future a boost?
Howard Pykett, financial advisor at Forrester Boyd Wealth Management explores the world of ISAs to provide you with some options to make the most out of your annual allowance.
One of the easiest ways to reduce your tax bill is to shelter any returns above your allowances in an Individuals Savings Account (ISA), which is a tax-efficient wrapper. For the 2018/19 tax year, you can put up to £20,000 into an ISA. For a couple with two children, the total ISA allowance available to the family is £48,520, which comprises £20,000 for each adult plus £4,260 of Junior ISA allowance per child.
There are various tax advantages to saving or investing through an ISA. You don’t pay Capital Gains Tax on any capital growth nor Income Tax on any income received, either as interest or dividends, from the investment or cash savings. Another advantage is that you don’t have to declare ISAs on your tax return.
Contact Howard to discuss your investment options.