Welcome to ISAAllowance.co.uk, committed to offering you clear information on the 2011/12 ISA allowance amounts and enabling you to be well-informed about the world of tax-free savings. Our aim is simple – to provide you with comprehensive details on ISA investments, the ISA allowance for 2011/12, and the kind of deals available today.
Nobody likes paying tax, but, ultimately, it’s tough luck. Every year we pay a large portion of our income to the tax man, often leaving too little left over to consider things like saving or investment. Saving and investing money, though, is an important part of the economy – in an attempt to promote saving, the government offer a type of account which actively rewards people who save and invest.
An ISA, or Individual Savings Account, is a type of bank account designed to encourage saving and investment. To that end, an ISA would allow you to save or invest money without being liable for tax on the amount invested.
It’s important to remember, though, that strict ISA rules are in place, limiting the total amount you can hold in an ISA over any given tax year. This limit, or allowance, ensures that people do not unfairly take advantage of the system by placing all of their income into this convenient tax-free account!
For tax year 2011/12, which runs from 6th April 2011 until 5th April 2012, the total amount that an individual can hold in an ISA is £10,680, an increase on last year’s rate in line with inflation. Of this total amount, you are permitted to hold up to £5,340 in a cash ISA, or invest the full amount as stocks and shares. Of course, it is perfectly possible to mix and match – providing that your cash ISA amount never exceeds £5,340 and your total ISA holdings don’t exceed £10,680. For more information on the types of ISA available, browse our useful Types of ISA page.
With this increase in the ISA allowance for tax year 2011/12, it is now possible to invest up to £10,680 at any point before 5th April 2012 – completely tax free and, often, with higher rates of interest than most savings accounts.
Every year, millions of people miss out on this great opportunity to maximise interest and reduce tax. Your ISA allowance expires at the end of the tax year and will not be rolled over to the next period. In short, if you don’t take advantage of the ISA allowance on offer, it’ll evaporate into thin air when the tax year ends!
So don’t waste time – if you’re hoping to invest into a cash ISA or stocks and shares ISA, ISAAllowance.co.uk are proud to provide you with clear, no-nonsense information to help you understand this often over-complicated form of savings account.