When to open an ISA ??

Stargazer2017

May seem a dumb question but, if I open an ISA now is the tax free allowance valid for tax year 17/18 ? None of the account explain which year the tax free element relates to. Clarity appreciated

badger09

Stargazer2017 wrote: »

May seem a dumb question but, if I open an ISA now is the tax free allowance valid for tax year 17/18 ? None of the account explain which year the tax free element relates to. Clarity appreciated

Not entirely sure what you're asking:o

You can pay a max of £20k into ISAs (there are several types;)) in the tax year 6/4/17 to 5/4/18. You can pay it in whenever you like, unless the particular ISA you want to use says otherwise; for example many fixed rate/fixed term cash ISAs allow only a short period during which you can pay in.

On 6/4/18 you will be allowed to pay in another £20k, or whatever the government decides.

Any interest, or gains inside the ISA will be tax free forever -or until the government decides otherwise:cool:

Stargazer2017

Thanks.
So basically the rush to open ISA before new tax year relates only to the maximum interest you can receive on the amount invested. Sorted !

AnotherJoe

Stargazer2017 wrote: »

Thanks.
So basically the rush to open ISA before new tax year relates only to the maximum interest you can receive on the amount invested. Sorted !

No. It relates to making sure you have made use of as much of your ISA allowance for the current tax year as you can afford. Generally the full £20k but may not be.

ColdIron

Stargazer2017 wrote: »

So basically the rush to open ISA before new tax year relates only to the maximum interest you can receive on the amount invested

And its use it or lose it nature