Henry Irving 15 March 2019
It’s no secret that ISAs are one of the most generous tax breaks that you’ll get from the government.
This tax year, you can contribute up to £20,000 into ISAs and your money is immediately sheltered from UK income and capital gains tax.
But time is running out if you want to make the most of your ISA for this year. You’ve only got until 5 April before the tax year slams shut. And if you don’t use your allowance by then, you’ll lose it.
If you don’t want to invest right now or you’d like more time to choose your investments, there’s no need for you to miss out.
There’s a simple and stress-free way to secure your ISA allowance and buy yourself some time.
Secure your ISA allowance with cash
It’s a common misconception that you need to invest straight away when you add money to a Stocks and Shares ISA.
But in fact, at this stage of the tax year, many investors choose to open or top up their ISAs with cash and pick investments whenever they like.
As long as you add money before the deadline, any contribution you make will count towards this tax year’s allowance.
Adding cash to your ISA at this time of year gives you a number of benefits:
- Secures your valuable ISA allowance – if you don’t use it by 5 April, it’s lost forever
- Don’t need to rush your investment decision – there’s no deadline for investing the money so you can invest when you’re ready
- Cash is a stress-free interim solution – although investing in ISAs is for the long term, you can always take your money out if you need to
Unlike the security of cash, investments can fall as well as rise in value so you could get back less than you put in. Tax rules can change and the benefits of investing in ISAs will depend on your personal circumstances.
Open or top up your ISA with cash
It’s easy to open or top up your HL Stocks and Shares ISA with cash before the deadline and invest when you’re ready. All you need is a debit card to hand and it takes minutes online.
Act now to avoid missing out.
This article is not advice. If you are unsure of the suitability of an investment for your circumstances, please seek advice.