LYNDHURST FINANCIAL MANAGEMENT BLOG

If you are unsure of the recent changes to ISAs, are a young saver and haven’t invested in ISAs before or have a large ISA portfolio but are unsure of whether your investments meet your current goals and objectives this free guide may help. www.lyndhurstfm.co.uk/guides/ISA_Guide_2010.pdf

If you are still unsure of how to best take advantage of your ISA allowance, or where your current ISAs are invested one of our independent financial advisers would be happy to talk you through all you need to know. You may have a large portfolio and need to devise a plan to take income from it. Call us for free 0800 435648 during office hours or send us an email and a time to call you back admin@lyndhurstfm.co.uk

PS - You must take advantage of your current ISA allowance by 05/04/2010 but with Easter and Bank holidays you should act before 01/04/2010.

More women and young people have been turning to Individual Savings Accounts (ISAs) since their introduction, new research suggests.

ISAs first appeared on the scene ten years ago as a tax-free incentive to save.

A report by the Halifax indicates that the proportion of women who saved through ISAs increased by 52 per cent during the first seven years of the account’s existence.

Data also suggests that ISAs are an increasingly popular way among the young of setting aside funds for a mortgage deposit.

The research makes use of information provided by the Bank of England, HM Revenue and Customs and the Department for Work and Pensions.

Almost two in five households in the UK (37 per cent) have an ISA account. The total increased by 53 per cent in the nine years to March 2009, the equivalent to 14.2 million savers.

There has, however, been a marked decline in the average amount paid into each account. In 1999/2000, that figure stood at £3,064, but by 2008/09 it was down to £2,636. One reason for the fall has been the effects of the credit crunch and the recession.

Over the course of the first seven years of ISA accounts, more men than women joined the scheme. But the proportion of women opening ISAs has been gathering pace. Over that same period, the number of women signing up to ISAs climbed by 52 per cent compared with just 35 per cent among men.

Younger people have also tended to find ISAs attractive. The under 25s, perhaps keen to save for a mortgage deposit, registered the biggest demographic increase in ISA savers over the nine-year period, rising by 85 per cent.

First-time homebuyers in the 25-34 age bracket, hobbled by mortgage repayments, represent the smallest group among ISA savers at just 24 per cent.

While the south east of England still lays claim to the highest national proportion of ISA savers, it is being caught by Scotland where numbers have been growing at their fastest rate.

Under the rules, a saver is only allowed to open one cash and one stocks and shares ISA each year, whichever the provider. Cash ISAs are the most popular, the Halifax study reported.

Recent changes in the regulations means that the total amount individuals can save in an ISA account in a tax year is rising from £7,200 to £10,200. Half of that new total - £5,100 - can be lodged in a cash account and half in a stocks and shares account. Alternatively, the full sum can be paid into a stocks and shares account.

As of October 2009, the over-50s - or those born on or before 5 April 1960 - could take advantage of the new thresholds. But as from 6 April 2010, anyone will be able to make use of the improved limits.

Source http://www.hicks.co.uk/cgi-bin/item.cgi?id=30782&d=601&h=160&f=260

It is likely that taxes will rise across the board, therefore it is essential to make use of the tax breaks currently on offer, your annual ISA allowance is one of them. But what if you don’t have any new money to invest? You could save tax on your existing investments! By cashing in your existing investments, you could open or top up your Stocks and Shares ISA and choose to hold the same investments or choose new investments which could save you tax now and in the future.

Under current tax rules, you can’t transfer investments straight into an ISA. You must sell them and use the proceeds to invest into your ISA. By selling your investments you will realise an gains or loss. If you realise a gain you can make up to £10,100 this tax year without paying Capital Gains Tax (CGT). If you realise a loss under current tax rules you can carry forward this loss indefinitely and offset them against future gains effectively increasing your CGT allowance at this time.

Once your investments are held in the ISA wrapper they are protected from any future gains and tax and there is no tax on income you receive.

If you have investments outside of an ISA wrapper and have not yet maximun funded your ISA contribution for the current tax year then call us on 0800 435648 or email admin@lyndhurstfm.co.uk to speak to one of our independent financial advisers.

Have you considered that Easter falls at the end of this tax year! The above timer displays realistically how long you have to complete and return your 2009/2010 ISA application.

Don’t miss out on this tax free investment opportunity. Get your application to us by 31/03/10 so we can record your details and send the application onto the insurer by special delivery.

Speak to us now on 0800 435648.