New (tax) Year, New You: How to Make the Most of Your ISAs in 2020/2021
Dawn breaks on the morning of April 6th 2020 – the sun is (potentially shining) and the new tax year has begun. With £20,000 of possibilities for your tax allowance for this new tax year – we’ve answered the most common questions that savers have at this stage.
The main questions we see at this point of the year is all about how to get your ISA sorted early, to take advantage of the tax free returns for the whole of the tax year – especially if you’re using it for your income.
We’ve looked at our four most frequently asked questions for this stage in the year and answered them for you here – so without further ado...
1. When Can I Open an ISA?
You can open an ISA from the very first day of the new tax year - this year, that is 6th April 2020.
Get in touch with the provider you want to open an ISA with (if you already know) and they'll be able to set this up for you - either by phone or online.
2. How Much Can I Invest?
The ISA allowance ceiling for this tax year is £20,000 per person per tax year. You can choose to put this into one ISA, or spread it across multiple ISAs.
The maximum for certain types of ISA - such as Lifetime ISA - is lower. For example, a you can only put in £4000 to a Lifetime ISA each year.
The same is true of Junior ISAs - you are able to put up to £9000 into a JISA per year - a notable increase from last year's allowance of £4,368!
3. Can I Invest with a New Provider?
If you have found an ISA rate with a provider you haven't previously held an ISA with and want to take advantage you are completely able to do so.
If you want to browse a wide range of different types of ISAs from different ISA providers, browse our rate pages, linked at the bottom of this blog.
4. Can I Transfer any Previous Years' ISAs?
Yes - transferring ISAs is perfectly fine. We actually wrote two separate in-depth blogs on how to do this, so make sure you give those a read before you do so.
Have you got any other questions? Get in touch!