ISA deadline day: 5 things you need to know

Please note this blog post was published over 12 months ago and so may not include the most up-to-date information, for example where regulation around investing has changed.

ISA deadline day: 5 things you need to know

Whether you are currently invested in an ISA or not, you’ve probably heard a fair bit about “ISA deadline day” in the news recently. As the 2017/18 tax year nears its end, ISA season has been in full force, with savers and investors looking to make the most out of this year’s £20,000 ISA allowance.

Here’s the 5 key things you need to know about ISA deadline day.

When is it?

Your deadline for investing your 2017/18 ISA is midnight on Thursday April 5. Use your allowance or invest as much as you can, as money left in other accounts may not benefit from the potential growth and tax rules associated with ISAs.

Why it matters

Investing in an ISA enables you to achieve maximum tax efficiency for your investments. With an ISA, you do not pay any Capital Gains Tax or Income Tax on any income generated, apart from dividends on ISA investments.

Investments left in an ISA will continue to reap tax-free benefits. Investing as much as you can each tax year, and keeping this investment for the long term, could help you to grow your money towards your goals.

What you can do

Invest today. You can open up a Stocks & Shares ISA by taking our online assessment, helping you to identify your appropriate level of risk and affordability to invest. If you already have an ISA with another provider you can transfer to us for free, enabling you to benefit from our globally diversified Fully-Managed Investment Portfolios.

If you are already invested in our Stocks & Shares ISA, top up now.

What next

The new tax year starts on Friday April 6 2018. You’ll once again have a £20,000 ISA allowance to invest in the tax year. By putting in as much as you can during the current tax year, you can start with a clean slate in the new tax year.

Your strategy for the next twelve months could be investing little and often. With the True Potential Investor app you can use impulseSave® to top up on the go from £1. You can also track your investment 24/7.

Why True Potential Investor?

Our Stocks & Shares ISA is invested in our Fully-Managed Investment Portfolios. These funds are managed by our expert in-house investment team, alongside world class fund managers such as UBS and Goldman Sachs. Through our partners, we have access to 9,000 experts in 200 worldwide locations. This level of global diversification could help to ride out fluctuations in the markets, your eggs aren’t all in one basket.

By investing in a Stocks & Shares ISA over a Cash ISA, you could achieve growth that is greater than the rate of inflation. This has been a problem with Cash ISAs, as interest rates have been lower than inflation. Of course, with Stocks & Shares, the value of investments can go down as well as up. By taking some risk, you could achieve growth. Our online assessment will help you to determine your affordability and appropriate level of risk for investing.

With investing, your capital is at risk. Investments can fluctuate in value and you may get back less than you invest. Past performance is not a guide to future performance. Tax rules can change at any time. This blog is not personal financial advice.

Personal Finance