5 Reasons Why You Should Use Your Full ISA Allowance

5 Reasons Why You Should Use Your Full ISA Allowance

With the April Deadline only a few days away, it is important to ensure that you use your full allowance in your ISA. We give you 5 reasons as to why you should:

If you don’t use it, you’ll lose it – Your annual ISA allowance cannot continue onto the next year, so if you do not use your full allowance, then you will have lost it for good.  You can save up to £15,240 and your allowance can be split between both cash ISAs and stocks and shares ISA.

More generous allowances – The ISA allowance is at its highest than it has ever been, giving you greater allowance to shelter your hard-earned savings from tax. At £15,240, this allowance is almost 30% more generous than the 2013/2014 allowance of £11,520 which gives you the opportunity to build substantial tax-efficient portfolios over time.

Easy access to funds – Unlike pensions, savers and investors have complete access to theirs ISAs and have the freedom to withdraw their money at any time. This means if you use your full allowance, that’s £15,240 you can have easy access to without any tax implications as well.

Accumulated tax savings can be big – In an ISA you do not have pay any capital gains tax or income tax which means that the bigger the allowance, the more attractive are the tax benefits. This is especially true for higher rate tax payers since less tax could lead to higher returns over the long term. However, the value of the benefit depends on your personal circumstances and tax rules are subject to change.

You can transfer you existing ISAs – If your ISAs are not performing as well as you hoped, you can switch to a different provider. In addition, you can also swap your cash ISA for stocks and share ISA, meaning if you use up your full allowance, you could possibly have full potential for return.


Not happy with your current ISA?

Since 1975, J Edwards Sellars have been advising on everything from Savings, Investments, and Pensions, to Estate and Wealth Planning.

As an ISA provider, we have our own savings platform known as the J Edward Sellars Stocks & Shares ISA. We are able to offer clients a fully comprehensive service by giving advice on:

  • How and where to invest your ISA to get the best return
  • How much of your ISA to leave as cash and how much to invest
  • Grouping your ISAs together to make sure they are managed in one central location

Many people are opting out of cash ISAs in search of higher returns and are continually using stocks and shares ISAs instead. The J Edward Sellars Stocks & Shares ISA pays an income of 3.5%* with the added advantage of potential capital growth on top. We understand the importance of working together as a team and as a client, you will benefit from having your own investment manager who will take the time to know you, get an understanding of how you work, and what you want.

To see how we can help please calls us on 01934 875 919.



Please note that this blog post is not personal advice. If you are unsure about your investments then please seek personal advice from a financial adviser. If you want more information on our ISA   please call us on 01934 875 919.

* The 3.5% is an estimate annual yield from a model cautious income portfolio, which is not guaranteed and may be revised in the future. The value of the investment can rise as well as fall and you may get back less than initially invested. The level of risk and the objective of the portfolio that the JES Stocks & Share ISA is exposed to may affect the growth of your investment. For example, a model medium growth portfolio has an estimate annual yield of 2.9% and a model moderate balanced portfolio has an estimate annual yield of 3.1%