Martin Lewis and the Money Saving Expert (MSE) team are reminding UK savers to take full advantage of their Individual Savings Accounts (ISAs) before the current tax year ends on April 5, 2024. After this date, the ISA allowance will reset for the new financial year, giving savers an opportunity to contribute again—until the window closes once more.
For the 2023/24 tax year, savers can deposit up to £20,000 into a range of ISA options including Cash ISAs, Lifetime ISAs (LISAs), and Stocks and Shares ISAs. This allowance remains unchanged for the upcoming year but is expected to be reduced drastically to £12,000 from 2027 following the Autumn Budget announcement by Chancellor Rachel Reeves.
The MSE team emphasizes the importance of using the allowance fully, warning: “Each tax year, everyone aged 18 or over receives a new ISA allowance. But if you don’t use it, you lose it. Contributions made after the tax year closes cannot be backdated or topped up.”
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Lifetime ISAs offer an attractive 25% government bonus on contributions up to £4,000 annually, making it a valuable tool for savers planning for their home purchase or retirement.
Importantly, money saved inside an ISA remains tax-free for as long as it is held, providing lasting financial benefit. The MSE team highlights that missed ISA allowances mount up in lost tax-free savings potential, noting that those who began ISA saving when they were introduced in 1999 could now have tax-free sums upwards of £241,520 plus interest.
Savers are encouraged not to delay – with less than a month remaining to make the most of this year’s ISA allowance, now is the time to act and safeguard your savings from taxation.