Regularly review strategy to make the most of savings, expert says

POSTED: 22nd February 2013
IN: Personal News

Cash-savvy Britons have been advised to regularly review their finances to ensure they are making their money work as hard it can.

Head of advice policy at financial advice and investment management service Towry, Kate Turner, reminded savers that the end of the tax year is drawing closer (April 5th).

She said: "A year can be a long time in lifetime financial planning. With twice yearly chancellor statements, tax advantages and allowances can and do quickly change.

"It is therefore crucial to continually review your strategy to make sure you continue to derive the most out of your savings." 

As the expert explained, savers still have time to take advantage of tax-free Isas, which are capped at £11,520 per year.

Ms Turner said: "Those who make regular savings into Isas can find that little amounts saved can often go a long way.

"Some Isa pots now easily top £500,000 worth of tax-efficient savings. Contribute early in the tax year to gain the maximum opportunity for growth."

A fixed rate cash Isa from Aldermore can be opened with an initial deposit of just £1,000, making it easy to begin a savings plan.

Users can also maximise their tax-free allowances by transferring their Cash Isas from other providers with ease. 

Savers were also encouraged by Ms Turner to make full use of the annual exempt amount on capital gains tax, which is £10,600 for 2013/14.

As she explained, this allowance will grow by one per cent in 2014/15, so married couples or civil partners might use a joint strategy to harness the advantages of both exemptions.

The expert continued to offer tax-efficient advice, saying: "For those who are philanthropic, note that gift aid payments can be carried back to 2011/12 if taxable income in 2012/13 has reduced and would fall within the lower tax band." 

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