Last minute ISA options and deadlines

There are several ways to use your ISA allowance before the end of the tax year.

| 7 min read

ISAs remain one of the most popular ways to invest. We would suggest investors use their ISA allowance before investing outside an ISA, and with Charles Stanley Direct there are no additional charges involved in investing in an ISA compared to a non-ISA Investment Account.

The current tax year ends on 5th April so anyone considering using their ISA allowances should not delay. This tax year (2021/22) you can subscribe up to £20,000 across all your ISAs and shelter your money from tax. However, you can’t carry over any unused allowance, so if you don’t use it before 5 April, it is lost forever. You get a new allowance in the new tax year, also £20,000, but you could have missed the opportunity to shelter more of your savings and investments from tax.

Here’s why it makes sense to use your allowance before the end of the tax year. Tax rules can change and the value of any benefits will depend on your individual circumstances. Open today or top up your existing ISA.

Stocks & Shares ISA

Why use your ISA allowance?

  • Excellent tax benefits

ISAs are one of the simplest and most effective ways to save tax. If your investments are in an ISA, you don’t have to pay tax on income from them, and there is no capital gains tax to pay on any profits. Even if keeping your money outside the clutches of the tax man doesn’t seem relevant now, it might in the future. It could be worth planning ahead for when your wealth grows.

  • Simplifying your life

ISA investments don’t need to be declared on a tax return, so they can make your affairs simpler.

  • Flexibility

As well as being able to invest in a wide range of assets, you can access your money at any time, so they are suitable for a variety of saving and investing needs. Please note that investments may need to be sold before a withdrawal can take place. Additionally, ISA holders can transfer their accounts without restriction or tax charge. A Cash ISA can be transferred to a Stocks & Shares ISA, and vice versa, giving savers and investors full flexibility to move their ISA savings into the account which suits them best.

ISA options for DIY investors

Make your own decisions

'DIY' investors who wish to select investments themselves can choose from the exceptionally broad range available: 3,000 funds, UK and certain overseas shares, gilts, bonds, investment trusts and ETFs.

With so many possible investments selecting individual ones can be a daunting prospect. To help narrow down the field our Research Team has created the Direct Investment Service Preferred List, which highlights what we consider to be the best-quality investments in each major area.

Covering both funds and investment trusts, and including passive funds or trackers as well as actively managed investments, there is a comprehensive range of options. If you are looking for inspiration before the tax year-end, make sure you read our ideas on how you might use your ISA allowance.

Our managed investments

Monitored and rebalanced by Charles Stanley experts, each of our funds offers a diversified portfolio in one easy-to-buy investment designed to meet a broad risk profile. The funds are actively managed by one of our dedicated portfolio management teams, which means you do not need to monitor and change individual funds, shares or other assets in your portfolio – it's done for you.

Our range of multi-asset funds invest in other funds as well as other assets across a variety of areas. Not having all your eggs in one basket means you are not reliant on specific investments or areas performing well and you benefit from Charles Stanley’s investment selection and day-to-day management.

Leave your ISA in cash for now

If you're unsure where to invest, you can always secure this year's allowance with cash now and decide later. There is no charge for holding cash but please note that no interest is paid currently.

ISA Flexibility

If you have made any cash withdrawals from your Charles Stanley Direct ISA since 6 April 2021, you are able to make replacement payments without affecting your overall ISA allowance.

End of tax year deadlines

Should you wish to add funds to your ISA (or SIPP) with us in the 2021-2022 tax year, the following deadlines apply.

Debit card payments

You can make payments online using your debit card until midnight on Tuesday, 5th April via the ‘Pay Money In’ link when you are logged into your account. This can be found under the ‘Manage my money’ option on your Dashboard page, under the ‘My Accounts’ tab.

We recommend you don’t leave subscriptions until the last minute in case you encounter a problem making a payment, and we cannot accept payments from anyone other than the account holder.

Electronic transfers

With our Direct Investment Service, we are able to accept an electronic payment, the funds need to arrive with us by midnight on Friday, 1 April. Please ensure that you quote your account number as reference at the time of payment.

To transfer monies from your Investment Account to your ISA

We recommend that you request the transfer by Friday, 1 April via the ‘Transfer Between Accounts’ link of the site under the ‘Manage my money’ option on your Dashboard.

We recommend that you place any share sales to fund your ISA from an Investment Account by Tuesday, 29 March, to ensure the funds have cleared in your account by Wednesday, 30 March, and any fund sales by Monday, 28 March.

To contribute to your ISA via a ‘Bed & ISA’

You should instruct us by calling us on 0131 550 1234 by Wednesday, 30 March. A Bed & ISA is a way to transfer shares from your Investment Account to an ISA, by selling the shares in the former and buying them back simultaneously in the latter. The cost is £11.50 per trade, stamp duty may be applicable on the repurchase and the spread between the buying and selling prices will also add to the cost.

Need help?

For more information on end of tax year deadlines and allowances, please read our general FAQs or contact the Helpdesk on 0131 550 1234. Existing customers can also contact the Helpdesk via Secure Message. They will be available until midnight on Tuesday 5th April to help you should you need them.

Nothing on this website should be construed as personal advice based on your circumstances. No news or research item is a personal recommendation to deal.

Last minute ISA options and deadlines

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Investment decisions in fund and other collective investments should only be made after reading the Key Investor Information Document or Key Information Document, Supplementary Information Document and Prospectus.

The information in this article is based on our understanding of UK Legislation, Taxation and HMRC guidance, all of which are subject to change. The tax treatment of pensions depends on individual circumstances and is subject to change in future. This article is solely for information purposes and does not constitute advice or a personal recommendation.

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