• Rachael Panteney

Tax allowances - Use 'em or lose 'em

Updated: Oct 28, 2020

Everyone has restrictions to the amounts they can save tax efficiently into their pension or ISA.

These are per tax year, so refresh again on April 6th.

For ISAs Doesn't matter if it is Cash, or Stock and Shares, the overall limit is £20,000 per person, per tax year across ALL of your ISA's. If you are paying into a Help to Buy ISA the limit is £2,400 per year.

If you are paying into a Lifetime ISA the limit is £4,000 per year . You can pay into more than one ISA during a tax year, but you cannot breach any of those limits.

Children have an annual limit of £9,000 that can be paid into a Junior ISA.

ISA allowances cannot be carried forward. If you don't use them, you lose them.

For Pensions The annual allowance will depend on your earnings. You can pay in more than these figures, but you wont get the tax benefits. If you are a non-earner the limit is £2880 (topped up by the Government to £3600 by the tax allowance).

For most earners, the limit is £40,000 or your annual earnings - whichever is the lower.

If you are a higher earner, your allowance may be reduced - so if you earn over £200,000 please speak to a Financial Adviser for clarification.

**With investing there is always risk involved, you should only take the level of risk you are comfortable with, as investments can fluctuate. The value of pensions 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**

Rachael Panteney

Financial Adviser

Willow Tree Financial Services

01323 436680


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