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Don’t Miss Your Opportunity To Maximise Your Tax-Efficient Pension And ISA Allowance Before 5th April 2020

Pensions

There’s still time to invest up to £40,000 into a pension this tax year. To make the most of your pension allowance you can either contribute personally or from your business.

There are a number of benefits to investing in a Pension: –

• A tax efficient way of saving for your retirement –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 modern pension contracts provide a wide range of options when it comes to taking benefits

Business owners – Please see our other article on how pension contributions can save corporation tax here

ISAs

You can invest up to £20,000 into an ISA this tax year. To make the most of your ISA allowance you can transfer your existing investments to a new ISA or you can set up and put money into a new one.

There are a number of benefits to investing in an ISA: –

• A tax efficient way of saving – free of capital gains tax and income tax
• You can access a wide range of investment options within a stocks and shares ISA
• You can have the flexibility to change 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 the investment for at least five years, ideally longer.

If you are thinking of making a contribution to a Pension or ISA before 5th April 2020 please contact us as soon as possible on 01270 250800 and ask to speak to a financial planner or email us awm@alextragroup.co.uk 

Please remember the value of investments in stocks and shares ISAs can fall as well as rise, you may get back less than you invest. The favourable tax treatment of Pensions and ISAs may not be maintained in the future and is subject to change. The benefit of tax treatment depends on your individual circumstances. A pension is a long-term investment the fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.