The annual allowance this tax year is £15240 and it is intended to be increased from 6/4/2017 to £20000.

A new Lifetime Individual Saving Account (LISA) has been introduced. This is for individuals aged 18-40 and intended to be used either to save for a deposit on a house or towards their retirement. A maximum of £4000 can be saved each year. The Government intends to add a bonus of £1 for every £4 saved. But be aware that if you withdraw money from the LISA to be used for a purpose other than a house purchase or retirement the bonus plus interest or growth earned will be returned to the Government with a 5% exit charge.

There has been another change this year. You can take cash out of an ISA and put it back in the same tax year without it being regarded as part of you annual allowance.

If your spouse or civil partner dies you can have their ISA's passed to you. You are actually entitled to have an additional ISA allowance equal to the fund value of the deceased person. Therefore you can either put in your own cash or have their fund transferred to you.

If you would like additional information on this article, please contact our Wills and Probate department on 01905 721600