There are now only a few weeks left in the current UK financial year — which means time is running out to make the most of your tax-efficient savings and investment opportunities.

Why Act Now?

Each tax year, every UK resident has an Individual Savings Account (ISA) allowance — currently £20,000 — that you can use to shelter cash and investments from tax. If you don’t use it before 5 April, you lose it. There’s no carry-forward of unused ISA allowance, so acting now could make a real difference to your long-term financial planning.

The Tax Benefits of a Stocks & Shares ISA

Investing within a Stocks & Shares ISA can offer significant tax advantages:

• No Capital Gains Tax (CGT): Any growth on investments held within a Stocks & Shares ISA is free from CGT. By contrast, outside of an ISA, the CGT allowance is now only £3,000 — meaning gains above this level may be subject to tax.
• No UK Income Tax on Dividends: Dividends paid within an ISA are tax-free, so you keep more of your return.
• Tax-free compounding: Over time, not paying tax on gains and income can significantly boost your investment growth.

These benefits apply whether you’re investing for long-term goals or simply looking to make more efficient use of your savings.

Transfer Cash ISAs — Without Using This Year’s Allowance

Did you know you can transfer a Cash ISA from a previous tax year into a Stocks & Shares ISAwithout using this year’s ISA allowance?

This can be an effective way to:

• take advantage of potential long-term growth,
• benefit from tax-efficient investment returns, and
• make your overall ISA portfolio work harder.

Importantly, you must transfer the ISA correctly through your provider — otherwise you risk losing the tax-free status or using part of your current year’s allowance.

We’re Here to Help

Choosing if and how to invest in a Stocks & Shares ISA — and whether transferring an existing ISA is right for you — depends on your personal circumstances, time horizon and attitude to risk.

At KPW Investments, we can help you:

• review your current ISA holdings,
• calculate the potential tax benefits,
• discuss suitable investment options aligned to your goals, and
• explain the risks involved with market-linked investments.

Risks to Consider

While Stocks & Shares ISAs offer attractive tax advantages, it’s important to remember:

• Investments can go down as well as up, and you may get back less than you invest.
• Past performance is not a guarantee of future results.
• Different asset types carry different levels of risk and volatility.

Don’t Miss the Deadline

With only 10 weeks left until the end of the financial year, now is an ideal time to take stock and act.

Get in touch with your KPW Investments adviser today to make the most of your ISA allowance and ensure your savings and investments are working as efficiently as possible.