It may be too late to use your 2009/2010 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 and with the ISA limit now increased to £10,200 for everyone, this becomes even more attractive.

Infact Yorkshire and Clydesdale banks even go as far as to suggest that by not contributing early, ISA investors could be missing out on up to £25million a day in lost interest. Many savvy investors do go for the early bird option, infact research from Barclays Stockbrokers suggests that almost a third  of investors place a lump sum into one of their accounts early in the tax year.

The same research also suggests that more than seven out of 10 investors intend to take full advantage of their new tax -free allowance, so there are a lot of tax savings to be had.

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