The end of the tax year is here – and that means it is time to make the most of your portfolios before the tax-free allowances reset on April 6th.
In this article, we’ll take a look at the ways in which you can take advantage of your allowances. From evaluating the risk level of your portfolio to changing providers altogether, this is your essential checklist to get through before the tax year comes to an end.
What are the ISA and SIPP allowances?
Both the individual savings account (ISA) and the self-invested personal pension (SIPP) have yearly tax-free allowances for investors to use. This means that, up to a certain threshold, investments in both wrappers grow tax-free.
- ISA: Each tax year, investors can put up to £20,000 into an ISA
- SIPP: The yearly limit for a SIPP is £60,000, with any unused allowance from the previous three tax years carried forward
Between now and the end of May, if you open and fund an account, or transfer an ISA or SIPP to InvestEngine, you could get a bonus of up to £4,000!
Capital at risk. T&Cs apply.
How does the tax-year end bonus work?
At InvestEngine, we think the end of the year deserves a celebration. This is especially true at the end of the tax year!
- Register to receive your bonus here
- We’ll aim to add the cash to your account between 16 June and 4 July, 2025
- You’ll have to remain invested for at least 12 months to keep your bonus.
Both new and existing InvestEngine customers are eligible for the end of tax-year bonus. There are, however, slightly different requirements for both.
New customers: ISA and SIPP top-ups and ISA transfers qualify for the bonus
Existing customers: SIPP top-ups and ISA transfers qualify, but ISA top-ups do not
First, let’s go through the basics of what the allowances are and how they work.
How to make the most of your allowances
Review what you’re invested in
A sensible starting point is to check if your current investments still match up with your goals. This means reviewing factors like how long you’re investing for, how reliant you are on your investments, and your attitude towards risk.
A portfolio which is too risky may result in you selling your investments when the market falls, locking in losses, rather than staying invested for the long term.
Investing in a portfolio which is too low-risk means missing out on potential returns which could have been earned had you invested in a higher-risk portfolio.
Check what you’re paying for your investments
No one likes hidden fees, do they?
Costs can have a major adverse impact on your long-term wealth. Whether it’s the cost of the investment platform you use, the ISA or SIPP you invest through, or the funds you invest in, the differences can build into huge sums over time.
InvestEngine’s fee-free platform (ETF costs apply) makes this a non-worry.
Explore your investment options
Once you’ve reviewed your existing investments, you can explore alternatives. Money Market ETFs, which aim to track the Bank of England’s SONIA rate (currently 4.45%) offer far more steady returns.
Or you could explore thematic investing if you want to focus your portfolio on specific industries. We’ve segmented our ETF range into Collections to make it easier than ever.
Review your investment provider
Investors value different things when it comes to what they look for in their platform – whether that be ease of use, customer service, cost, or range of investment options.
A portfolio review provides a chance to re-assess whether you’re happy with your current provider, and investigate whether there are any more suitable alternatives available on the market.
Important information
Capital at risk. The value of your portfolio with InvestEngine can go down as well as up and you may get back less than you invest. ETF costs also apply.
This communication is provided for general information only and should not be construed as advice. If in doubt you may wish to consult a professional adviser for guidance.
Tax treatment depends on personal circumstances and is subject to change, and past performance is not a reliable indicator of future returns.