In a bid to encourage more investment in UK assets, the government has recently introduced a new UK Individual Savings Account (ISA) with a £5,000 annual allowance. This new ISA will be available in addition to the existing £20,000 ISA allowance, allowing individuals to invest a total of £25,000 per year in tax-free savings. The UK ISA aims to channel investment into UK-focused assets, helping to boost domestic growth and provide investors with a new way to diversify their portfolios while enjoying the benefits of tax-free savings.
British Savings Bond: A New Investment Option
In addition to the new UK ISA, the government also launched a British Savings Bond through National Savings & Investments (NS&I) in April 2024, offering a guaranteed interest rate, fixed for three years, making it an attractive choice for those looking for stable, tax-free savings options backed by the government.
Junior ISA (JISA) Allowance Remains Unchanged
For those saving for their children’s future, it’s important to note that the annual allowance for Junior ISAs (JISAs) remains unchanged at £9,000 for the 2024/25 tax year. The JISA continues to be a popular tax-efficient savings vehicle for parents and guardians looking to build a nest egg for their children’s education or other future needs.
Need Help Navigating Your Investment Options?
If you’re considering maximising your ISA allowances or exploring the benefits of the new British Savings Bond, our friendly team is here to help. We understand that choosing the right investment products can be daunting, especially with new tax-free savings options available on the market. Our experienced advisors can guide you through your options, helping you make informed decisions tailored to your financial goals and ensuring you get the most out of your tax-free savings.
We help clients across Sussex and Kent, including Eastbourne, Bexhill, Uckfield, Lewes, Crowborough, Hastings, Seaford, Newhaven, Tunbridge Wells, Brighton, Hove and Worthing. We offer a free initial consultation, which can be held at your home, workplace, or our office.
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The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
It is important to take professional advice before making any decision relating to your personal finances. Information within this blog is based on our current understanding of taxation and can be subject to change in future.
It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Taxation depends on individual circumstances as well as tax law and HMRC practice which can change.
The information contained within the blog is for information purposes only and does not constitute financial advice.
The purpose of the blog is to provide technical and general guidance and should not be interpreted as a personal recommendation or advice.
