As the end of the 2011/12 tax year approaches, savers are being encouraged to make the most of their tax-free ISA annual allowance.
Individual Savings Accounts (ISAs) have an annual subscription limit of £10,680, of which no more than £5,340 may be saved as cash.
However, experts are warning that savers looking to use their annual allowance for the current tax year should do so as soon as possible, to avoid missing the 5 April deadline.
Natalie Ceeney, Financial Services Ombudsman, commented, ‘At this time of year, the ombudsman service sees a big increase in complaints about ISAs where people have missed deadlines’.
On 6 April 2012, the ISA allowance will rise to £11,280 for the 2012/13 tax year.
Up to £5,640 of this can be saved in cash with one ISA provider. The remainder can be invested in stocks and shares with either the same or a different provider.
For more information and advice on your tax and financial planning needs, please contact us.