Using Your ISA Allowance
If you are planning to make the most of this year’s £20,000 ISA allowance, you need to use it before 5 April 2024. There’s no rollover from one tax year to the next.
Growth, income and withdrawals are not liable for income or capital gains tax, but the value of an ISA will form part of your estate for inheritance tax purposes.
Under-18s, or those who wish to save on behalf of a minor, can put up to £9,000 into a junior ISA for 2023/24.
As part of your £20,000 ISA allowance, it’s possible to invest up to £4,000 in a lifetime ISA which receives an annual government bonus of up to £1,000 per year.
You must be over 18 but under 40 years old to open a lifetime ISA, which can be used to buy a first home or fund retirement. Further scheme rules and early withdrawal penalties apply.
Existing savers with help-to-buy ISAs can continue to put up to £200 a month towards securing a mortgage to purchase their first home.
Providing the funds are used to buy a first home, the savings will earn interest and qualify for a 25% government bonus of up to £3,000. The purchase price of the property must not exceed £250,000 (or £450,000 in London).
Key Considerations
- If you don't already have an ISA, should you start one this tax year?
- If you have used your ISA allowance, can your spouse or civil partner put any excess savings into their ISA?
- Make sure you have used the £20,000 maximum tax-free ISA allowance before 5 April 2024.
Year-End Tax Guide 2023/24
If you would like to access our full year-end tax guide, simply click here to view the PDF.
Alternatively, you can view an area specific mini blog from the list below:
1. Personal Allowances and Reliefs
6. Business Asset Disposal Relief
8. Tax-Efficient Staff Benefits
10. VAT
11. Penalties
Set Yourself up for Success
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Book your 30 minute discovery call today— enjoy a relaxed, no-obligation chat with one of our qualified accounting advisors. We can assess your situation and determine how to best serve and add value to your business.
Alternatively, you can send us a message with any queries (big or small), and one of our team members will get back to you promptly.
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