The new tax year has provided us with an opportunity to take up this year’s annual ISA subscription of £20,000 (unchanged from last year) This can be invested either into an investment stocks and shares ISA or Cash ISA in whatever split you care for as long as the total invested does not exceed £20,000. Contributions of up to £1,660 can be made monthly. The lifetime ISA limit remains £4,000.
The junior ISA limits have risen to £4,260 from last year’s £4,128.
The annual allowance for pension tax relief remains at £40,000 or 100% of taxable income whichever is the lowest. For investors who have not taken the full annual allowance up in the past three years there is the potential of making up past years unused contributions in this tax year.
The lifetime allowance for total pension fund values that do not suffer a lifetime allowance tax recovery charge has gone up from £1,000,000 to £1,030,000.