Nutmeg’s head of financial advice and guidance, Claire Exley, offers her tips for investing as the financial year comes to a close on April 5, 2025
Subscribe to our free Wharf Whispers newsletter here
Are you missing out on tax-free savings and investments?
A recent survey of UK investors found more than a third hadn’t started using their ISA for this financial year.
The poll, conducted by Opinium in January, showed only one in five had invested the full £20,000 allowance.
It showed women (24%) were more likely than men (18%) to have invested the full amount.
Under the current rules, each year UK savers can invest this amount or less in an ISA product and pay no tax on the interest, growth or returns.
The allowance resets each year on April 6, 2025, rather than rolling over.
Nutmeg – a digital wealth manager and ISA provider owned by J.P. Morgan – said changes to personal taxation in the Autumn Budget were driving investors behaviour.
The survey found 31% were planning to invest more in an ISA this year to mitigate changes around capital gains tax and 29% intended to do the same due to proposed new rules around inheritance tax on pensions.
“We have seen a clear shift in investor behaviour since the autumn with more people moving their savings and assets into ISAs to minimise the amount of tax they may need to pay,” said Nutmeg head of financial advice and guidance, Claire Exley.
“No-one wants to pay more tax than they need to and having the right ISA strategy can help to reduce your overall tax liability.
“The beauty of ISAs is that they can be a simple and efficient way to build a portfolio and invest towards medium and long-term goals while minimising your tax.
“Even if you don’t have new money to put into an ISA, this can be a good time to look at any ISAs you may already have and make sure they’re working hard for you.
“Whether it’s transferring to a new provider or reviewing your balance of cash and investments, a little financial admin could serve you well in the long run.”
top tips: Nutmeg’s Claire Exley on ISAs
>> Review Your Contributions
“Also check how much ISA allowance you have remaining,” said Claire.
“You don’t have to maximise the allowance for it to make a difference: the more you have invested, the more you can benefit from compounding on any potential growth and not having to pay tax on any returns.
“If you can afford it, you should aim to consistently save or invest towards your goals – a little top up now could make a sizeable difference over time.”
>> Cash And Investments?
“Consider whether you want to drip-feed future contributions,” said Claire.
“If you have money to invest but aren’t ready to put it into the markets all at once, the Nutmeg 100% cash pot feature allows you to use your 2024/25 ISA allowance by making your contribution and then ‘drip-feeding’ money into an investment pot over time.”
key details: Nutmeg
Nutmeg is owned by J.P. Morgan, which has its European headquarters in Canary Wharf.
The digital wealth manager offers stocks and shares ISAs, pensions and general investment accounts.
Your capital is at risk when investing in stocks and shares ISAs.
Tax rules are dependent on individual circumstances and may be subject to change in the future
Find out more about the wealth manager here
Read more: Awe London to open its doors at 8 Harbord Square
Read Wharf Life’s e-edition here
Subscribe to our free Wharf Whispers newsletter here
