Maximise Your Tax-Free Allowance Before the Deadline

The UK tax year ends on April 5th, and if you haven’t used your £20,000 ISA allowance, now is the time to act. Investment ISAs offer a tax-efficient way to grow your wealth, and whether you prefer a managed or self-managed approach, there are great options to consider.

In this guide, we’ll cover how to:

• Use your ISA allowance before the deadline.

• Choose between a managed ISA (Nutmeg) and a self-managed ISA (Freetrade).

• Understand how ISAs and pensions can provide valuable tax relief.

Important: You can only contribute to one type of investment ISA per tax year. If you open a new one, ensure it’s the right fit for you.

1. Why Use Your ISA Allowance Before April 5th?

An Investment ISA (Stocks & Shares ISA) allows you to invest up to £20,000 per tax year, with no capital gains tax or income tax on your returns.

If you don’t use your allowance by April 5th, it’s gone forever—you can’t roll it over to the next tax year.

2. Best Investment ISAs to Open Now

There are two main approaches when opening an investment ISA:

A. Managed ISA: Nutmeg – Six Months Fee-Free

If you prefer a hands-off approach, Nutmeg offers a fully managed investment ISA, where experts handle your investments.

• Ideal for beginners or those who don’t want to manage their own investments.

• Uses a range of portfolios to match your risk level.

• Get six months of fee-free investing when you open an ISA with over £500 using this link.

B. Self-Managed ISA: Freetrade – Get a Free Share

Prefer to pick your own investments? Freetrade offers a self-managed ISA, where you control your portfolio.

• Ideal for those comfortable making their own investment choices.

• Wide range of UK and global stocks, ETFs, and investment options.

• Get a free share when you open an ISA using this link.

Reminder: You can only contribute to one Investment ISA per tax year, so choose carefully.

3. Pensions: An Extra Tax Benefit for Higher Earners

In addition to an ISA, contributing to a personal pension (SIPP) can reduce your taxable income and boost retirement savings.

Both Nutmeg and Freetrade offer pensions, allowing you to:

• Get 20% tax relief added automatically.

• Claim back an extra 20-25% if you’re a higher or additional rate taxpayer.

• Grow your pension tax-free until retirement.

If you’re a high earner, maximising pension contributions before April 5th can be a smart tax move.

4. Act Before April 5th – Don’t Lose Your Allowance!

With the tax deadline approaching, now is the time to:

✔ Open an Investment ISA before April 5th.

✔ Consider a pension for additional tax relief.

✔ Use the right platform:

• Nutmeg for managed investments (six months fee-free)

• Freetrade for self-managed investing (free share)

Disclaimer: This is not investment advice. Always do your own research before making financial decisions.