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  • Dan Gaskin

A fool and his money...

Today is April Fool's day. It is also Maundy Thursday.

If I were to keep in line with tradition, I would blog about a new global index fund for left-handed people or tell you that quantitative easing is actually a good thing or that inflation really is running at 2%. Then, at the end of the blog, I'd write 'April Fools!! Ha ha - only joking'.

Well, no such luck.

At Hungerford Financial Partners, we are different from traditional 'independent financial advisers' who are generally product led. It would feel inconsistent to 'follow the crowd' and fall in line this morning's marketing efforts across the internet.

So, let me just quickly remind you about the ISA deadline which is imminent.

Individual Savings Accounts (ISAs) are tax wrappers that allow you to save up to £20,000 tax-free per year. There are many different variants but suffice it to say that you have until midnight on 5th April, 2021 to take advantage of this year's allowance. Or, to put it another way: Monday at midnight!.

The four main types are:

  • Cash ISAs

  • Innovative Finance ISAs

  • Stocks and shares ISAs

  • Lifetime ISAs

The allowance is the maximum amount of money you are allowed to put into an ISA in a single tax year. Once you use up your £20,000 allowance, you have to wait for the new tax year to come round before you get another £20,000 allowance. You don't have to put the £20,000 into just one ISA, you can spread it around providing you don't exceed the limit for the year - you cannot invest more than £20,000 in total across all of them - ok, I think I've laboured that point.

There are also junior ISAs which are for children under the age of 18. These are limited to £9,000 allowance for this year.

The allowance for a Lifetime ISA is £4,000 per year - which the Government will top up with an additional £1000 - you can only open these if you are aged 40 or younger...and you can only pay in to them until you're 50.

Your ISAs don't finish when the tax year finishes - they carry on.

ISAs cannot be backdated. Once you miss the allowance window, its gone for good.

There are pages of text I could write about ISAs with lots of little details about how they work but if you want to know more about them, the best thing to do is call us on 01488 757377. If you really want to read more, a good place to look is here on the Government website.

Remember, ISAs are only a small part of your financial arsenal. In order to advise on them, we'd need to understand your goals, needs and wants.

Have a great day.

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