It may be too late to use your 2010/2011 ISA allowance, however don’t wait until March next year to consider your options or you may be missing more than just the deadline.

January through to May is traditionally considered the ‘ISA season’ with almost two thirds of the ISA business taking place over this period. Many investors chose to contribute throughout the year, however there are many who are rushing to maximise their allowance as the end of the tax year looms.

Not only does this result in a mad panic for all, but it also means you could be missing out on really maximising the tax efficiency of your ISA. By investing into your ISA as early in the tax year as possible you can gain almost 12 months worth of tax breaks. Investors who use their ISA allowance at the start of the tax year have the opportunity to shelter an extra year’s returns from tax, compared to someone who chooses to invest on the last day of the tax year, and with the ISA limit now increased to £10,680 for everyone, this becomes even more attractive.

Many savvy investors do go for the early bird option, infact research from Barclays Stockbrokers suggests that around a third  of investors place a lump sum into one of their accounts early in the tax year.

If you would like to review your ISA strategy, or learn more about tax efficient ISA saving, then contact us today on 0845 345 3536