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Get something out of 2020/21 – make the most of your ISA allowance

Get something out of 2020/21 – make the most of your ISA allowance alt

The end of the tax year is nearly here and frankly, we're glad to see the back of this one! But, before we say good riddance, let's make sure we get all we can from it. Follow our end of tax year checklist to make sure you get all from the £20,000 ISA allowance for 2020/21.

Use your allowance on the ISA that is best for you

Want a simple, tax-free account? Make the most of your £20,000 annual allowance with a Cushon ISA that provides you with the option to set as many separate ISA 'pots' as you like within your single Cushon ISA. Your account will be set up as a Stock and Shares ISA even if you choose to only hold cash within it, making it easier for you to invest some or all of your money without switching accounts or setting up a separate Cash ISA.

Want to set some money aside for the kids? Save up to £9,000 per year for your children in a Junior ISA that other family and friends can also contribute to once opened. They'll be granted access when they turn 18. You can transfer a Child Trust Fund into a Junior ISA.

Are you looking to become a first-time home buyer? Build a deposit fast with a bonus of 25% on savings up to £4,000 per year in a Lifetime ISA.

Have you maxed out your ISA allowance for the year? No problem, a General Investment Account is available to you. There's no limit to how much you can save into a GIA and you can easily withdraw your money at any time. When you invest in a GIA you may have to pay tax on any income or capital gains you earn from your investments. If you don't already have an Investment ISA, you might want to consider this before you invest in a GIA.

Get your government bonus from a LISA

The Lifetime ISA (LISA) is a tax-free savings account to help first-time home buyers aged 18-39 get on the property ladder. Save money into a LISA and the government will give you a 25% bonus on the money you put in - that's a bonus of up to £1,000 a year! Any savings in a LISA can also be used for retirement. While you are contributing to a LISA you will still receive the 25% government bonus up to age 50.

You can withdraw your money without charge if you're using it to buy your first home under 450k and you've had the account for at least 12 months. If you're saving for retirement, you can take out your money once you've reached the age of 60. If you withdraw your money for any other reason or before you hit 60, the government will apply a withdrawal fee of 25% on the amount withdrawn. The government has temporarily reduced the penalty to 20% for any funds withdrawn between 6th March 2020 and 5th April 2021.

Consolidate your savings

Do you have other ISAs? It can be helpful to have your savings in one place. You can transfer ISAs throughout the year, but whilst you are topping up your Cushon ISA why not think about transferring at the same time. With Cushon, you can benefit from our free investment monitoring service - CushonMe - to help keep your investments on track. Get all your ISAs in one place with our quick and easy transfer process.

Meet the deadline!

The deadline for adding money to any ISAs you may have is midnight 5th April 2021. However, the money has to be within your ISA at the time, not being processed so be aware of any transfer times on bank deposits and if you wish to benefit using a salary deduction you must sign up for a Cushon account in February to allow for a March deduction, anything later will fall into the next tax year.

This checklist is for information only and should not be taken as personal advice. If you're unsure whether an investment or savings product is right for you, please seek advice. Also please remember, as with all investments, they can go down as well as up, and you may get back less than you put in.