10 ways to make use of your ISA tax allowance in the new tax year

Now that the new tax year has arrived, we've identified 10 ways to make the most of your ISA tax allowance.

ISA tax allowance: coins with plants growing out of them
Your ISA tax allowance can help you to avoid paying tax on your savings
(Image credit: sarayut)

With a new financial year underway, have you considered how to make the most of your ISA tax allowance?

The ISA turns 25-years-old today (6 April). Historically, cash ISAs haven’t offered great returns for savers – especially when compared with the top rates being offered by savings accounts in light of the current 16-year high interest rate.

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Tax bandPersonal savings allowance (PSA)
Basic-rate taxpayers (20%)£1,000
Higher-rate taxpayers (40%)£500
Additional-rate taxpayers (45%)No allowance

Vaishali has a background in personal finance and a passion for helping people manage their finances. As a former staff writer for MoneyWeek, Vaishali covered the latest news, trends and insights on property, savings and ISAs.

She also has bylines for the U.S. personal finance site Kiplinger.com and Ideal Home, GoodTo, inews, The Week and the Leicester Mercury.