New Limits for the 2020-21 Junior ISAs
The annual Junior ISA allowance makes a significant leap to £9,000 from this April.
As we come to the close of the current tax year, the Junior ISA limit will be more than doubled in 2020-21, increasing from £4,368 to £9,000.
The adult ISA annual subscription limit for 2020-21 will remain unchanged at £20,000.
Invest both your ISA or Junior ISAs in either a Stocks & Shares or a Cash ISA or alternatively split the amount between both types.
The annual ISA allowance is per individual and a couple can invest up to £40,000 between them for 2020-21
ISAs - What you need to know
- ISA deadline for the tax year 2019-20 is at our close of business on 3rd April 2020. The new tax year starts on 6th April 2020.
- Invest the full amount (up to £20,000 for ISAs and £9,000 in JISAs) in either a Stocks & Shares ISA or a Cash ISA; alternatively split the amount between both types.
- The 2020/21 ISA allowance is the same as the 2019/20 year at £20,000.
- The annual ISA allowance is per individual. A couple can put up to £40,000 between them into ISAs in this tax year.
- Under ISA Rules, surviving spouses, or those within civil partnerships, can inherit an ISA allowance on death.
- You may be entitled to Additional Permitted Subscriptions (APS) if your spouse or civil partner dies. This is equal to the value of your deceased spouse's ISAs and enables you to invest this money tax-efficiently in addition to your own allowance.
Such Additional Permitted Subscriptions are only available for a limited time period relating to your spouse's estate. If your spouse's ISA was held with James Sharp & Co, you can open a new ISA with us to use your APS. Where you inherit ISA assets, these can be transferred into your new ISA (subject to market value), or you can fund the APS with your own cash. Even if your spouse's ISA was held elsewhere, you can open a new ISA with James Sharp & Co to use your APS, however you will only be able to make cash subscriptions.
Plant an ISA and let nature take its course:
That's the message from the team of investors at James Sharp & Co as the deadline for using this year's allowance approaches.
James Sharp offers flexible ISAs and Junior ISAs with a choice of investments including any UK or foreign company listed on a recognised stock exchange, or any fund or investment trust which meets the ISA rules.
Steve Ross, Investment Dealer and Adviser says it is important to take the long view when it comes to ISAs. "If you combine disciplined contributions with the tax sheltering benefits, then the results can be considerable. It's enabled some of our clients to use their ISA as a supplementary income in retirement.
"I like to use the analogy of planting a tree. You don't dig it up after two weeks to see if it has grown, nor do you chop it down in winter because the leaves have fallen off, it's a long term process and you let nature take its course," Steve explained.
Please be aware tax treatment depends on individual circumstances and are often subject to change. Please consult an appropriately qualified professional before making any decisions on an ISA or other tax related product