Did you blink? The last financial year comes to an end at the close of trade today (Thursday, 5th April) and if you still have an allowance in your 2011/2012 ISA, now is the time to be sending those Faster Payments or internal transfers to it. Any transfers that clear after the close of business today will not count!
If you are unsure of when your ISA provider closes, give them a very quick call!
See my feature article A Guide To: Individual Savings Accounts.
Your Cash ISA allowance for this year is £5,340, and rising to £5,640 as of tomorrow (2012/2013). If you’re short of that figure, be sure to take advantage of the tax-free savings an ISA can bring. Do remember though that if you have taken money out of your ISA you can’t put it back. If you have raided that particular piggy-bank, you will need to calculate what your remaining allowance is.
For the numerically challenged (I include myself in that statement), this can be easily worked out as follows:
£5,340. Minus whatever you have put into your ISA, regardless of whatever you have taken out.
Whatever is left, will be your remaining allowance (if anything).
I’ve seen some weird and wonderfully confusing sums to perform for this same calculation but that really is the simplest way of doing it without getting overly fancy about the whole thing. The bottom line is you can put in to an ISA, and you can take out what you’ve put in, but you can’t then put back whatever you have taken out. It’s a one-way savings account.
Your Stocks and Shares ISA allowance is also £5,340 and will close at the same time, using the same rules. The 2012/2013 total allowance will rise in total from £10,680 to £11,280.
Be sure to shop around for next year’s ISA – do not automatically assume the one you have is the best out there. Shop around, and look for the best interest rates, no management fees (unless the rate offered significantly trumps those fees), and make sure transfers in are permitted to take the most advantage of the given rate.
Happy Tax Free Saving!
Tags: 2011/2012, Individual Savings Account, ISA
Category Investing, Savings, Stocks & Shares, Tax
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