The tax year ends at midnight on 5 April, so time is running out to make full use of this year’s valuable ISA allowance.
If you don’t use it before the deadline it’s lost forever, so if you are interested please don’t delay. If you need more time deciding where and when to invest, you can simply add cash to your ISA (and hold it as cash) and invest when you are ready.
At this stage of the tax year, many investors choose to open their ISA with cash and select the investments later. This offers the following benefits:
- Secures your valuable ISA allowance
- No need to rush your investment decision – sign up now, then invest when you’re ready
All investments can fall as well as rise in value so you could get back less than you invest. Tax rules can change and the benefits will depend on your individual circumstances. This article is not personal advice so, if you are unsure about the suitability of an investment for your circumstances, please seek advice.
Why invest in ISAs?
- Tax benefits – no capital gains tax or further income tax on investments
- Generous tax free allowance – £15,240 in 2015/16
- Simplicity – ISAs don’t need to be declared on your tax return
To contribute and claim tax relief, you should be under 75 and a relevant UK individual. You must live in the UK or EEA when you start the SIPP (Self Invested Personal Pension.