The new tax year started on the 6th of April, and we wanted to remind you that your 2020/21 allowances have become available. Whether you have a lump sum to invest, or you want to start making regular contributions, there’s no time like the present!

Getting your money to work in a tax-efficient manner at the beginning of the Tax Year, always makes sense. We understand that recent market falls could make you nervous, but assuming that you do not need the money in the short term, and you are happy with a longer-term view, then this could be a good time to be adding to your investments.


You can invest up to £20,000 as an individual into your ISA account each year, with all proceeds being free of Income and Capital Gains Tax. For a married couple that is £40,000 that can be invested in a tax-free environment each year.


The Junior ISA limit has now increased from £4,368 to £9,000 per year, so plenty more scope than before to help the kids build up a deposit on a house, or to fund the University pot for example.


If your total earnings do not exceed £240,000 p/a, you can invest up to £40,000 this tax year into your pension, and you will get tax relief at your highest rate against the contribution.

There have been some positive changes to the pension annual allowance for higher earners, which is good news! We have included a link below detailing these changes so you can see if you are affected.

More info: Pension Allowance Changes


So, if you have cash sitting on deposit which you are not looking to access and would like to make ISA or pensions contributions now, please let us know and we will get these arranged for you.

If you have any queries, please do not hesitate to get in touch.


This publication has been prepared for information purposes only by Carrington Investment Consultants Ltd and does not constitute financial advice. The value of investments, and any income generated from them, will be affected by interest rates, exchange rates, general market conditions and other political, social and economic developments, as well as by specific matters relating to the assets in which it invests. Investors should be aware that the value of units may well fall as well as rise, is not guaranteed and that past performance is not a guide to future performance.