ISA deadline is approaching – why now is the time to act

The current UK ISA tax year is coming to an end, and the ISA window closes on 5 April. If you don’t use your allowance by then, it’s gone for good. For many savers and investors, this final stretch of the tax year is the moment to get organised — especially if you’ve been sitting on cash or meaning to invest but haven’t quite got round to it.

An ISA allows you to shelter up to £20,000 per tax year from UK income tax and capital gains tax. That applies whether you’re using a Cash ISA, Stocks and Shares ISA, or a combination of both. With just weeks left, it’s worth checking how much of your allowance you’ve already used and whether you’re making the most of it.

Cash vs investing: which ISA makes sense?

If you’re holding money you may need in the short term, a Cash ISA can still make sense. But for money you won’t need for several years, a Stocks and Shares ISA offers the potential for higher long-term returns — with the same tax protection.

As always, investing comes with risk. Values can go down as well as up, and you could get back less than you invest. But historically, investing over five years or more has offered better growth potential than holding cash alone.

A timely offer: Hargreaves Lansdown Stocks & Shares ISA cashback

One of the standout ISA offers available right now comes from Hargreaves Lansdown, the UK’s largest investment and savings platform.

Until 5 April 2026, new HL clients can receive £75 to £4,000 cashback when opening a Stocks and Shares ISA with £10,000 or more. The cashback is tiered based on how much you invest:

• £10,000–£19,999 → £75

• £20,000–£99,999 → £200

• £100,000–£249,999 → £750

• £250,000–£499,999 → £1,500

• £500,000–£999,999 → £2,500

• £1,000,000+ → £4,000

The cashback is paid into your HL Loyalty Bonus Account in March 2027, provided the money stays invested until 28 February 2027.

DepositScout readers can access this offer via our affiliate link here: https://link.depositscout.com/p8yR

Why HL is popular with ISA investors

HL’s Stocks and Shares ISA is free to open and charges up to 0.45% per year for holding investments. You can:

• Invest up to £20,000 tax-free each year

• Choose your own funds, shares and ETFs, or use ready-made portfolios

• Start with £100 lump sum or £25 per month

• Manage everything via a highly rated mobile app

• Access extensive research, analysis and investment ideas

It’s designed to suit both hands-on investors and those who prefer a more guided approach.

Don’t leave it until the last minute

ISA season always gets busy in the final weeks before the tax year ends. Transfers can take time, and decisions rushed at the last minute are rarely the best ones. Even if you don’t use your full allowance, using some of it is usually better than letting it expire unused.

If you’ve been meaning to invest, or you’re sitting on surplus cash, now is the moment to review your options and lock in this year’s tax shelter.

Important: This article is not personal financial advice. Investing involves risk, and tax rules can change. Always consider your own circumstances and, if unsure, seek regulated financial advice.