ISA Allowance – Use it or lose it – Only 6 days to go

The personal tax allowance is going up by a measly £70 per annum and will be frozen for the next few years. So more people will be taken in to basic and higher rates of tax, just though inflationary pay rises.

If you invest into a taxable investment such as a collective, you will pay tax on gains at 10% or 20% and tax on income at 7.5% or 32.5%. There are annual allowances of £12,300 (on gains) and £2000 (on income).

Cash ISAs are a total waste of time. A basic-rate tax-payer can earn £1000 a year interest before they pay tax. At a savings rate of 0.1%, you would not pay any tax unless you had more than £1,000,000 on deposit. A higher-rate tax payer could hold £500,000 and still pay no tax. So what is the point of a Cash ISA?

So if you want to boost your long-term savings by removing tax, invest into a Stocks and Shares ISA.

You need to invest by the end of March as most of early April is the Easter holiday!

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