If you haven't already, there’s still time to invest up to £20,000 into an ISA and up to £40,000* into a Pension this tax year (2022/2023), if you act now. If you’re thinking of making a contribution, please contact your independent financial adviser directly, as soon as possible before 28th February 2023. We’re here to help.
Frequently asked questions
How much can I invest in an ISA this tax year (2022/2023)?
For the 2022/23 tax year, the maximum ISA allowance is £20,000. You can choose to invest your money in one type of ISA account, or you can split the allowance across some or all of the other types available. The tax year runs from 6 April to 5 April and your allowance re-sets at the start of each year, so if not used is lost. You can only pay £4,000 into your Lifetime ISA in a tax year, but this leaves £16,000 to contribute to other ISA accounts. Parents and guardians can set up an ISA for their children under the age of 18, then parents and others can invest up to £9,000 (2022/2023) in a Junior ISA for the child and this is in addition to the £20,000 allowance.
What are the benefits of investing into an ISA?
There are a number of benefits to investing in an ISA:
- It is a tax efficient way of saving, free of capital gains tax and income tax
- You have the flexibility of changing your investments as your needs change; so, you can use your ISA to grow your savings, or take an income when you need it.
- There is no fixed term, although you should be prepared to hold on to your investment for at least five years, ideally longer. (There may be some restrictions on particular ISAs such as the lifetime ISA and Innovative Finance ISA.)
How much can I invest into a Pension this tax year (2022/2023)?
There’s still time to invest up to £40,000* into a pension this tax year (2022/2023). To make the most of your pension allowance you can either contribute personally or from your business.
What are benefits of investing in a pension?
There are a number of benefits to investing in a pension:
- It is a tax efficient way of saving for your retirement; with income tax, capital gains tax and inheritance tax^ benefits once the investment are held in the pension wrapper
- You can benefit from tax relief on contributions.
- You can access a wide range of investment options within the pension contracts we recommend.
- You have the flexibility to invest in a portfolio aligned with your appetite for risk.
- Most pension contracts provide a wide range of options when it comes to taking benefits.
*Pension contributions are dependent on your personal circumstances, please speak to your financial adviser