Top 5 things you need to know this ISA season
CapitalRise shares five top tips from its CEO, Uma Rajah, this ISA season. CapitalRise offers prime real estate-backed investment opportunities, with tax-free returns available for eligible investors through its Innovate Finance ISA (IFISA).
With new financial year now on the horizon, ISA season is now in full swing. However, your tax-free allowance does not roll over into the next fiscal year (6th April 2025), so it is a case of ‘use it or lose it’.
Making the most of your ISA benefits is more important than ever. Read on to find out more…
1. Get to know the four ISA types, particularly the Innovative Finance ISA
There are four main types – Cash, Stocks & Shares, Lifetime, and Innovative Finance ISAs. It is important that you research each of these, so you understand which types best suit your personal needs.
One type worth considering is the IFISA, the variety that is offered by CapitalRise. Introduced in 2016, the IFISA is a tax wrapper for money invested in certain alternative investments. With the CapitalRise IFISA, funds may be invested in a loan to a developer, for example, who is looking to fund new prime property projects in areas such as Mayfair, Kensington or Chelsea.
2. Open an account easily online
Opening a new ISA could not be more straightforward. After selecting an ISA type, the application process is typically as simple as filling out a form from your chosen provider. In the form, you will be required to provide personal details, such as your name, address, and National Insurance number.
With CapitalRise, you must be a member of the CapitalRise Platform and have opened a standard account in order to open a CapitalRise IFISA. If you are not already a member, you can apply in a few minutes at www.capitalrise.com (eligibility criteria apply). Your CapitalRise IFISA can then quickly and easily be opened online, with our Investor Relations team on hand to answer any questions.
3. Maximise your personal tax allowance
ISAs provide a personal tax-free allowance of up to £20,000 per tax year – this can be split between different ISA types or put all into one. You do not need to pay income tax, tax on dividends, or capital gains tax on funds in an ISA, potentially saving you a lot of money. If you can afford to do so, you should aim to max out your tax-free ISA allowance each year, because whatever is not used is lost. As of 6th April 2024, it has been possible to make multiple subscriptions to the same type of ISA in one tax year, so you will have even more options at your disposal.
4. You can move your existing ISA funds between providers as much as you like, at any time
If you already have an ISA, an ISA transfer is a process that lets you move money you have built up in ISAs over previous tax years to a new provider, while retaining its tax-free benefits. Moving existing funds around does not impact the present tax year’s allowance either, though fees may apply.
5. Keep on top of your ISAs
A common mistake is not actively managing your ISA – instead, you should regularly monitor whether making a transfer would be worthwhile to a more competitive option. You may also find keeping track of your ISAs difficult. In fact, it is not uncommon to forget about an ISA you might have opened years ago. Now is the perfect time to dig through your records, locate where your money is, and assess whether it can be put to better use elsewhere.
Uma Rajah, CEO and Co-Founder of CapitalRise, adds:
“With the end of the tax year approaching, now is the time for everybody to get their investments in order. Make sure you are getting the most out of your current £20,000 annual tax-free allowance by looking into all the ISA options available to ensure you are still saving or investing at a competitive rate.
“It is important that the public is aware of the true benefits of ISAs, as well as how they work. At this time of high costs, it is essential to ensure your money is working as hard for you as it can be.”
Please note: CapitalRise does not provide tax or financial advice and encourages investors to seek advice from an independent financial adviser. Tax rules and allowances are dependent on individual circumstances and may change in the future. Investing through an ISA wrapper does not guarantee repayment of an investment.
