I’m going to try to be better at managing my finances this year, so want to look at what I should put into an ISA before the end of the tax year. I have £50,000 sitting in my current account and another £100,000 in a bank deposit account. Are there other opportunities that run out on April 5?

Lowestoft Journal: Richard Barker, chartered financial planner with Smith & PinchingRichard Barker, chartered financial planner with Smith & Pinching (Image: Archant)

Richard Barker of Smith & Pinching responds:

Before looking at specific opportunities, I think you should first take a step back and get some independent financial advice. It’s important to set goals and targets, and then plan accordingly to achieve them.

The advice process involves looking at every aspect of your finances and your circumstances, then building a financial plan that is both suitable and achievable for you. You can then – with the help of your adviser – select suitable savings and investments that align with the plan.

There are various tax-efficient opportunities that your plan might include, many of which are limited to each tax year. ISAs are a good starting point – with the choice of either Cash or Stocks & Shares ISAs – with a current allowance of £20,000. Any unused ISA allowance is lost once the tax year has ended.

Pensions are another tax-efficient way of investing. There is no limit on the amount you can save into your pensions each tax year, but there is a limit on the total amount that will attract tax relief and before a tax charge might apply. The limit is currently £40,000 for most people, so you can save up to the lower of £40,000 or 100pc of your qualifying earnings. Tax relief gives you a boost of at least 20pc of the value of your contribution, depending on which tax band you fall into.

Importantly, you can carry unused annual pension contribution allowance forward for up to three years, giving you the opportunity to make a larger contribution this year (provided you have sufficient earnings in the current tax year). Pensions can’t be accessed until you reach the minimum retirement age (currently 55 but going up to 57 in 2028).

You may also be able to take advantage of the Personal Savings Allowance, the Starter Rate for Savings, and the Dividend Allowance, if you have income or dividends at the qualifying levels. Each of these is tied to the tax year and cannot be carried forward. Your adviser will take these into account when building your plan.

Do get advice from a chartered financial planner so that you can build a financial plan and manage your savings and investments to achieve the goals you have set.

Any opinions expressed in this article do not constitute advice. The value of an investment and the income from it could go down as well as up. The return at the end of the investment period is not guaranteed and you may get back less than you originally invested.

For more information, please visit www.smith-pinching.co.uk