Pictured above: Kevin Jenkins, Independent Financial
Adviser, Key Financial Management
With only a handful of weeks left until the end of the tax year
on April 5, a Midlands based IFA is advising people to consider
their investment choices carefully.
Traditionally this time of year sees a rush of people top-up
their existing ISAs or open new ISAs in the knowledge that if they
don't use their ISA allowances by April 5, then they will lose
them. And to all intents and purpose this is correct, but
with interest rates being as low as they are currently, Kevin
Jenkins from Key Financial Management, which is a trading name of
2plan Ltd, is advising to look carefully at the interest rates
being offered.
Jenkins commented: "I generally recommend for people to take
advantage of their tax free ISA allowances, but I would also advise
people to pay close attention to the interest rate being offered on
cash ISAs as there may well be alternative accounts which have
higher interest rates and negate the tax perks of a cash ISA".
Currently the annual investment limit into a stocks and shares
ISA is £7,200 pounds, or up to 3,600 pounds can be invested
into a cash ISA with the remainder in stocks and shares".
For those aged 50 and over, the limit is £10,200,
£5,100 of which can be invested in a cash ISA. This new
limit, which came into force in October 2009, will be extended to
all other ISA investors in the next tax year.
Jenkins concluded: "With the end of the tax year fast
approaching, now is a good time to make sure all your finances are
in order and I would advise anyone wanting financial advice to
obtain independent financial advice rather than seeking advice from
an adviser who is tied and can only either advise on the products
of one provider or from a limited selection of providers."
Easter falls early this year and means that the last working day
of the tax year is April 1st.