New Tax Year. Why you should use your allowances early.

New Tax Year. Why you should use your allowances early.

Many people leave using their ISA, Pension and other tax-efficient allowances right up until the tax year end and then in a panic, rush around to try to get them invested/utilised by 5th April each year.

In a lot of cases, they miss the boat!

This is because they don’t realise that, although some things are easy to implement in a timely fashion, whereas other key tax efficient options available to them, take a lot longer to process and therefore they miss the deadline of 5th April.

The 6th April 2018 was the start of a new tax year, so here are some points why you should consider it important to use what allowances you can at the start of each tax year, as opposed to leaving it right up until the end.

The benefit of investing at the start of the tax year and utilising your allowance will mean that it has a longer time span invested, which gives it the opportunity to enhance your returns.

For the 2018/19 tax year, you can invest up to £20,000 in ISA (Individual Savings Account). 
This is by far an easy way to save and you have the options of either investing it in a cash ISA, a stocks and shares ISA, or both. Although with Interest rates currently low, we are finding that most of our clients are choosing to invest in a stocks and shares ISA. 

That’s said, if you feel you are a little nervous about investing straight into stocks and shares ISA, then you could do a combination of stocks and shares and cash ISA’s.

When the time comes that you wish to invest more in stocks and shares ISA, the cash ISA can be easily transported across.

Did you know that from 6th April 2018 you can invest £4,126 into a Junior ISA for your children if they are aged under 18?

Also, if you are between 18 and 40 years of age you can put £4,000 each year into a Lifetime ISA until you reach the age of 50 and providing you do not withdraw it you could benefit from a government bonus of 25% up to a maximum of £1,000 per year.

These are just a few tax efficient options open to you and your family, but there may be many more!

If you wish to discuss the allowances available to you, please contact us and arrange a free initial consultation.

So, in summary, the benefits of using your allowances at the start of the tax year are as follows:

  • You have time to sit with a financial adviser and discuss your allowances available for the tax year and you can set a timescale over the 12 months to decide when is best to invest.
  • You get more time invested in the markets which can have the potential to enhance investment returns.
  • You have peace of mind that your family’s wealth is protected should you die.
  • It will relieve your stress levels at the end of each Tax Year.

The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.

 Tax treatment varies according to individual circumstances and is subject to change.

 Tax Planning is not regulated by the Financial Conduct Authority.





When one person from a couple dies, it is a very traumatic time for the surviving partner.

Having to arrange a funeral, sort out the wills and probate as well as letting all of the financial companies know that someone has passed away.

This is somewhat eased by having a good financial adviser. They will help contact all of the relevant companies to get the relevant forms completed in a timely manner and therefore, make sure that the process isn’t more daunting or complicated than it needs to be for the survivor.

However, it can be somewhat different when both parties die and the next of kin has to try and find out who and what they should deal with in order to sort out the deceased estate.

By introducing your next of kin to your financial adviser, you will have the peace of mind that they will know who to contact in the first instance, so that your financial adviser can ensure that your relatives get everything in order in a prompt manner and probably save hundreds of pounds in extra costs for solicitors to find out all your investment information.

Your next of kin do not need to know all of your personal information whilst you are alive, but they should know who it is to contact, should they need to.

If you wish to discuss the potential impact of your estate after death, please contact us and arrange a free initial consultation. We will be pleased to hear from you.