0Martin Lewis shares ‘sorry’ verdict over ‘£1’ ISA ‘strategy’ – key details | Wales Online Follow walesonline:
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Martin Lewis was asked for his advice on a ‘strategy’ a listener was considering to make the most of his ISA allowance
Martin Lewis gives verdict on ‘clever’ ISA strategy – what you need to know
- Money-saving expert Martin Lewis has run the rule over a listener’s ‘clever’ ISA strategy during his latest podcast episode.
- A listener called Martin contacted the MoneySavingExpert founder with what he thought was an innovative plan to maximise his ISA allowance. The caller had £20,000 in an ISA from a previous tax year and £5,500 in this year’s ISA, but knew he wouldn’t be able to use his full £20,000 annual allowance.
- His strategy involved opening new ISAs with just £1 in future tax years, then filling them with £20,000 each when his pension lump sum became available in 2028. The listener said: “I really appreciate your guidance as I am trying to plan well in advance and avoid making an expensive mistake.”
- While Lewis – well-known to BBC and ITV viewers and listeners – initially called it a “good idea” and a “clever idea”, he quickly explained why it wouldn’t work. ISA regulations are highly specific about deposits within each tax year, and unused allowances cannot be carried forward.
- Lewis delivered the disappointing news clearly: “I’m afraid the straight answer is no. You can’t just open up an ISA with a £1 and then a couple of years later fill in what you haven’t put in.”
- The annual ISA allowance is £20,000 per tax year, which runs from 6 April to 5 April, and can be spread across different types of ISA accounts.
- READ THE FULL STORY: Martin Lewis says ‘I’m so sorry’ as he sends new warning on ‘£1’ 2027 ISA ‘strategy’
