The time is ripe to think about your ISA again

By DTE Business Advisers

26 Mar 2021

isa-individual-savings-account-dte-business-advisers.png

With the tax year end soon to be upon us, we should all be thinking about utilising our annual ISA allowance. The cut-off date is 5 April so action needs to be taken now.

There is no rollover of unused relief from one tax year to the next.

This article about ISA allowance was originally published on DTE website.

What are ISAs and ISA allowance?

ISAs, or Individual Savings Accounts, are savings accounts that you don’t have to pay any tax on. The main distinctive difference between ISAs (including stocks and shares ISAs) and other savings vehicles is that ISAs offer tax-free income and gains, which means you can get more for your investment.

The annual ISA allowance is a limit to the amount you can put into an ISA every tax year. The allowance for this current tax year is £20,000.

Tax implications of an ISA and what ISAs can be used for

You are probably aware that growth, income and withdrawals are not liable for income or capital gains tax but, to be clear, the value of an ISA will form part of your Estate for Inheritance Tax purposes.

As part of your £20,000 annual ISA allowance, it is possible to invest up to £4,000 in a Lifetime ISA which receives an annual Government bonus of up to £1,000 a year. To qualify you must be over 18 but under 40 years old to open a Lifetime ISA which can be used to buy a first home or fund retirement.

Existing savers into Help to Buy ISAs can continue to put up to £200 per month towards securing a mortgage to purchase their first home. Providing the funds are used to buy a first home the savings will earn interest and qualify for a 25% Government bonus of up to £3,000.

Junior ISA

If you have children under 18 there is a Junior ISA where up to £9,000 per annum can be paid into the account. These deposits can be made either by the under 18 individual or by those who wish to save on behalf of the minor, a very useful long-term savings idea.

Already used up your ISA allowance?

If you have used your ISA allowance for this tax year, you could consider transferring your excess savings into a spouse or civil partner’s ISA.

If you don’t already have an ISA, you should give serious thought to starting one now. If you do that before 5 April 2021, you can still utilise this year’s allowance of £20,000. For further advice about your situation or if you have any questions, contact us at [email protected] to book a free, no-obligation call with one of our advisers and we will get back to you as soon as possible.

Latest news

1

Inspired plc acquired by HGGC Inspired logo

Inspired plc acquired by HGGC

19 Aug 2025

2

Lancashire uniform provider acquired in £12.5m deal Trutex images

Lancashire uniform provider acquired in £12.5m deal

19 Aug 2025

3

Burnley aircraft firm sees profits soar Safran Nacelles

Burnley aircraft firm sees profits soar

19 Aug 2025

4

Lancashire marina bought by Aquavista Fettlers Wharf Marina

Lancashire marina bought by Aquavista

18 Aug 2025

5

Work starts on new business units at Enterprise Zone Danny Pinkus Cllr Mark Smith and Robert Pinkus at Phase Two Of Enterprise Court

Work starts on new business units at Enterprise Zone

15 Aug 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Sub36 Networking - Follow the signs
Sub36 Deaf Village Social1200
Networking
17 Sep 2025

Sub36 Networking - Follow the signs

The Deaf Village, Blackburn, BB2 5EN

10:00 - 12:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

The Business Network Central & East Lancashire
LBV Header (24).png.png
LBV Hub Networking
21 Aug 2025 - 21 Aug 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Morecambe Bay Walk
Walk.jpg.jpg
LBV Hub Awards
30 Aug 2025 - 30 Aug 2025

Morecambe Bay Walk

Arnside, CARNFORTH, LA5

09:30 - 14:00

Tri-Site Survey Equipment Showcase
Linkedin Cover.jpg.jpg
LBV Hub Seminars
03 Sep 2025 - 03 Sep 2025

Tri-Site Survey Equipment Showcase

Harewood House , Leeds, LS17 9LG

09:30 - 16:00

Longridge Soap Box Derby
Screenshot 2025-06-10 090035.png.png
LBV Hub Fundraisers
14 Sep 2025 - 14 Sep 2025

Longridge Soap Box Derby

Berry Lane, Longridge, PR3 3WH

10:00 - 16:30

Preston Tech Connection - The Ultimate Tech Quiz!
Preston Tech Connection Sept 25.png.png
LBV Hub Networking
16 Sep 2025 - 16 Sep 2025

Preston Tech Connection - The Ultimate Tech Quiz!

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:00

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Preston Freelancer Meet-Up: September
Sept Freelancer (1).png.png
LBV Hub Networking
23 Sep 2025 - 23 Sep 2025

Preston Freelancer Meet-Up: September

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Speed Networking with BNI
2.png.png
LBV Hub Networking
24 Sep 2025 - 24 Sep 2025

Speed Networking with BNI

Chorley Football Club, Chorley, PR7 3DU

16:00 - 19:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV 123 Online Graphic
Subscribe now

Weekly news bulletin