Still time to use up the tax-free Isa allowance
YOU have no more time to waste if you are planning to mop up your tax-free Isa allowance for this financial year because tomorrow’s midnight deadline is almost upon us.
Every UK adult can save up to £20,000 this financial year with all returns free of income and capital gains tax while children have their own Junior Isa allowance of £4,128.
The Isa allowance is issued on a “use it or lose it basis”, so if you fail to act by the end of the 2017-18 tax year on April 5 you have lost yours for good.
Savers typically take it to the wire with today’s date of April 4 being the peak Isa date two years ago, according to fund manager Fidelity International.
Associate director for personal investing Ed Monk said: “If you have not used this year’s Isa allowance you’re not alone, but you still have time to invest.”
Wealth adviser Hargreaves Lansdown saw a rush over the Easter weekend and the site’s personal finance analyst Sarah Coles said the Lifetime Isa, or Lisa, is particularly popular among last-minute savers. The Lisa encourages savers aged 18 to 39 to set money aside for their first property or retirement by offering them a 25 per cent Government-funded bonus on contributions, worth up to a maximum of £1,000 a year.
Coles said online applications can help savers make a final dash to beat the midnight deadline: “All you need is five minutes, your National Insurance number and a debit card with cleared funds. It’s your last chance before you lose this year’s allowance forever.”