Morningstar's Guide to ISAs, Pensions and Tax-Efficient Investing

There is less than a month left of the 2015/16 tax year; meaning time is running out to utilise those all important allowances, reduce your tax bill and boost your market returns

Emma Wall 7 March, 2016 | 8:55AM
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Have you used up this year’s ISA allowance? Topped up your pension? Got your financial house in order? There is less than a month left of the 2015/16 tax year; meaning for investors there is less than a month to utilise those all important allowances, reduce your tax bill and boost your market returns.

This year those investment decisions have been made all the most complex by the changing market landscape – both volatile stock markets and rumours of policy changes have had investors panicked. Leaks from the upcoming Budget next week suggest that Chancellor George Osborne will yet again be tinkering with the way that we save for retirement – and although we won’t know the full details until he stands up on the despatch box and delivers his speech next Wednesday March 16th, we can make some educated guesses as to how this will effect pension savers.

This tax year is also the last one where higher rate tax payers can enjoy favourable tax relief on their annual pension allowance, so if you earn more than £150,000 a year now is the time to top up your pension. In fact, regardless of your earning power, from April you will see your annual pension allowance drop from £1.25 million to £1 million. Time is running out for these use-it-or-lose-it benefits so ISA and pension investors – or anyone looking to boost their savings and reduce their HMRC bill should read on for our Guide to ISAs, Pensions and Tax-Efficient Investing.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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