Don’t Miss Out: The ISA Deadline Has Been & Gone – & The Rules Might Be Changing
If you’ve been meaning to open or top up your Individual Savings Account (ISA) this year, consider this your friendly (but firm) nudge: time is running out.
The deadline to use your ISA allowance for the last tax year was midnight on April 5th – and that’s not just a date to circle in your planner. It was your last chance to shelter up to £20,000 from tax in a cash ISA, stocks & shares ISA, or innovative finance ISA. After that? If you don’t use it, you lose it. The allowance doesn’t roll over.
But, and this is good news… You can still use/contribute to this year’s ISA. However, here’s where things get more pressing: the Government is considering changes to ISA rules. While no final decisions have been made, recent consultations have hinted at everything from increased flexibility to new restrictions or reforms aimed at simplifying the system. Depending on how things shake out, the ISA you open today might look very different a year from now – and not necessarily in a good way.
So, what should you do? Well if I hadn’t already, I’d act now. If you’re in a position to save or invest, take advantage of the current ISA system while it’s still available in its familiar form. Whether you’re going for the stability of a cash ISA or the long-term growth potential of stocks and shares, locking in your allowance now gives you peace of mind and a tax-free wrapper around your money.
A few quick tips:
- Don’t wait until the 5th April next year. Providers can get busy, and some cut-off times are earlier than midnight.
- If you’re not sure where to put your money yet, you can open a stocks and shares ISA with a low-risk fund or hold cash while you decide.
- Already have an ISA? Topping it up still counts – just stay within the annual limit.
The bottom line? An ISA is an opportunity. And with possible reforms on the horizon, this year’s window could be your best bet for locking in a tax-efficient future.
Act smart, act now. Your future self will thank you.