ISAs 2017: How much can I invest in an ISA next tax year? Top 10 biggest ISA mistakes to avoid – WBNews

The ISA limit for the current tax year is £15,240 but you will no longer be able to use this allowance after April 5 2017. The good news is that savers will be able to save up to £20,000 in ISAs between April 6 2017 and April 5 2018. Former Chancellor George Osborne increased the new tax year’s ISA limit by £5,000 to encourage everyone to save more. “We know people like ISAs – because they are simple,” he said in his 2016 budget speech. “You save out of taxed income; everything you earn on your savings is tax-free; then it’s tax-free when you withdraw it too.” Mr Osborne also announced the creation of the new Lifetime ISA to help young people save for their first home and retirement. How much can you invest in an ISA next tax year?Deloitte said that the increase to the limit was a “welcome move to encourage savings”, while the Lifetime ISA would support the next generation. It added: “ISAs are seen as more user-friendly than traditional pensions, the aim being that the younger generation will embrace them as a means for savings.” Savers can put their all their annual allowance in a cash ISA, a stocks or shares ISA or split their allowance between different types of ISAs. Danny Cox, a chartered financial planner at Hargreaves Lansdown, said: “You can pay this into a cash Isa or stocks and shares ISA in any combination. Top 10 biggest ISA mistakes to avoid Wed, February…more detail