Don’t miss the bus! The end of the tax year is approaching and with it the end of your opportunity to make the most of your 2020/21 ISA allowance.
The impending close and start of new tax years often results in a flurry of activity for ISA providers and our Innovative ISA (IFISA) is no exception. So, if you haven’t used your allowance yet don’t worry you’re not too late, but here are a few things to consider:
1. It’s not too late if you act now!
You have a £20,000 ISA allowance for this tax year (2020/21) and there’s still time to capitalise on it by investing in an ISA before the end of the tax year; it will then continue to earn tax free for you for years to come but if you don’t act and use it, you lose it.
(Note: due to the change of tax year falling over the Easter weekend this year, FOLK2FOLK would need to be holding your ISA funds in our IFISA client account, or the funds would need to be invested, by close of business on Thursday 1st April 2021 to be eligible).
2. You could benefit from a double whammy in 2021
You also have a £20,000 ISA allowance for the 2021/22 tax year, so by investing a further £20,000 from 6th April you’ll benefit from the double whammy of earning tax-free interest on a total of £40,000 in 2021.
3. Compare your options and consider transferring your ISA
If you have a Stocks & Shares ISA or Cash ISA, consider the return and level of risk offered and take the opportunity to look around to see if better options now exist. Our IFISA offers an interest rate of typically 6.5% p.a. and your investment is secured against land or property. The interest is paid monthly providing you with a tax-free monthly income generating ISA. It’s easy to transfer your existing ISA money to a FOLK2FOLK Innovative Finance ISA, simply complete our Transfer Authority Form once you’ve set up a FOLK2FOLK IFISA and we’ll do the rest.
4. Know where your money is going and how risk is managed
Whatever you choose, it’s important to know what your money is being invested in, what the risks are and how the ISA provider manages the risk.