News : HMRC approved tax avoidance!
With tax avoidance very much in the news recently, a commonly available tax avoidance option is to make use of your annual ISA allowance.
It is fair to say that ISA’s are a tax avoidance scheme that is government approved!
The deadline for investing in an ISA ends on 5th April 2012 and it is a case of ‘use it or lose it’ as you cannot carry over any unused allowance.
The full ISA allowance for 2011/12 is £10,680, although the limit for a cash ISA is half of this, at £5,340.
Many banks are arranging to stay open as late as possible in order that customers may subscribe to a cash ISA within the time limits.
For a stocks and shares ISA. You will need to move quickly in order to meet the investment deadline, the past 12 months have seen a surge of money being invested in stocks and shares as interest rates struggle to provide a decent return for investors.
Despite constant promoting, many investors leave their decision to invest in an ISA to the last minute, hence an increase in subscriptions in the final weeks of the tax year.
It is sometimes better to drip cash into your chosen investment in order to flatten the peaks and troughs of share prices during the year.
The ISA allowance for 2012/13 will increase to £11,280 with the cash ISA limited to £5,640.