Year End Tax Planning 2021/22

As a new tax year approaches, it is important to ensure you are in the best financial position to help protect and grow your future wealth.

Our Bitesize Tax Planning provides you with details of the key allowances and reliefs available to you. The tax planning tips are available in easy to consider sections.

This article looks at Individual Savings Account (ISA).

Tax-free income and gains

An ISA is a simple savings plan which offers tax-free interest and other income payments and tax free capital gains. There is one for nearly every saver, and today the ISA is still regarded as one of the best places to store your cash.

Usually when you invest, you must pay tax on any income or capital gains you earn from your investments. But with an ISA, all capital gains and income made from your investments won’t be taxed. This is provided you stick to the rules on how much you can pay in.

The investment limit for 2021/22 is £20,000 per adult individual and you can split this between a cash ISA and a stocks and shares ISA (and a Lifetime ISA if eligible).

If you haven’t used up your maximum allowance yet this year, make sure you top up before 6 April 2022. Your allowance doesn’t roll over to the next tax year.

Look around and compare cash ISA rates each year. If you wish to leave your money there for a few years, perhaps consider a stocks and shares ISA instead.

For more information on Individual Savings Account or to discuss any of the issues raised in this article, please contact your adviser, or call us directly on 0161 819 1131. Further information can also be found at or on

See the other topics in our Bitesize Tax Planning series:

Personal circumstances differ and not all of this information is applicable to every client and/or their business, this information is general in nature and should not be relied upon without seeking specific professional financial advice.

The financial conduct authority does not regulate tax advice, estate planning or will writing.

The content in this article is for your general information and use only and is not intended to address your particular requirements. Articles should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles.

Thresholds, percentage rates and tax legislation may change in subsequent finance acts. Levels and bases of, and reliefs from, taxation are subject to change and their value depends on the individual circumstances of the investor. The value of your investments can go down as well as up and you may get back less than you invested. Past performance is not a reliable indicator of future results.

Pareto Financial Planning Ltd is authorised and regulated by the Financial Conduct Authority.