BBC Expert Urges Savers to Maximise ISA Accounts Before Tax Year Ends
# BBC Expert Highlights Last Chance for 6 ISA Accounts Before Significant Change
**Laura Pomfret warns that now is the time to act for savers.**
On BBC Morning Live, finance expert Laura Pomfret emphasized that individuals have a narrow window to capitalize on certain Individual Savings Accounts (ISAs) before a major shift in regulations. According to her, it’s crucial for taxpayers to take advantage of their ISA allowances, particularly as the annual limit of £20,000 per person resets at the start of the new tax year. This presents a vital opportunity for growing savings tax-free.
Pomfret pointed out that utilizing ISAs effectively means avoiding taxes on accrued interest. "It is a fresh start and there's an opportunity to make the most of your money and we're going to start with cash is because the ISA limit resets every year and we've got £20,000 per person," she explained. This underscores the advantage of depositing funds in an ISA compared to traditional savings accounts where interest is taxable.
Moreover, Pomfret highlighted that many individuals have access to a personal savings allowance, which allows basic rate taxpayers to earn up to £1,000 in interest outside of an ISA without incurring tax. This amount reduces to £500 for higher-rate taxpayers. "This is why we should use our ISA allowance first because you can put £20,000 in and not have to worry about any interest that you make you don't have to pay tax on it," stated Pomfret.
The expert also mentioned strategies for savers considering how best to invest their money. If someone is financially capable of setting aside funds for a period without needing immediate access, they may benefit from fixed-rate options. Pomfret encouraged viewers to explore various ISA products, including stocks and shares ISAs and lifetime ISAs, provided they meet the necessary criteria. "Ultimately getting it in tax wrapper is a great thing to do," she asserted, emphasizing that any growth from these investments would occur without tax liabilities.
This report is for informational purposes only and is not financial advice.