CapitalRise experts said: “You do not need to pay income tax, tax on dividends, or capital gains tax on funds in an ISA, potentially saving you a lot of money. If you can afford to do so, you should aim to max out your tax-free ISA allowance each year, because whatever is not used is lost.”
Different types of ISAs can be opened at once – but remember the rules
CapitalRise experts said it’s flexible and easy to open different types of ISAs, just so long as people remember the rules and restrictions.
They explained: “There are some guidelines that must be considered when managing investments. One is that you are restricted in the number of new ISAs you are permitted to open each tax year.
“Currently, you can open one of each ISA type per year; the £20,000 personal tax allowance can be divided between ISAs or all put into one product. For example, you can open a new IFISA, Cash ISA, Stocks and Shares ISA, and a Lifetime ISA in a given year, but you are not able to open more than one of each type.”
Stay organised with accounts
Keeping track of ISAs can be difficult – in fact, it is not uncommon for people to forget about an ISA they might have opened years ago.
CapitalRise experts said: “Now is the perfect time to dig through your records, locate where your money is, and assess whether it can be put to better use elsewhere.”
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