The ISA deadline’s approaching fast. Here are 3 things to do now

With the 2023/24 ISA deadline less than a week away, Edward Sheldon’s putting money into his accounts and looking for investment opportunities.

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The 2023/24 ISA deadline is 5 April. This is the last day to contribute to an ISA for the current tax year.

At this time of year – with the deadline only days away – there are several moves that can pay off. With that in mind, here’s what I’m doing now.

Capitalising on the £20k allowance

To be able to invest up to £20,000 every year with any returns being completely tax-free is an absolute gift, and I want to take advantage of it.

So the first thing I’m doing is contributing as much money as possible into my two ISA accounts (I’ve a Stocks and Shares ISA and a Lifetime ISA).

Now personally, I won’t be able to use my full £20k ISA limit this year as I have some large expenses coming up. But I’m on track to make a decent contribution for the tax year.

And if I can find any more excess cash between now and deadline day, it’ll be going straight into my Stocks and Shares ISA (I’ve already maxed out my Lifetime ISA allowance).

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Reviewing my ISA portfolio

Looking beyond contributions, I’m also taking some time to review the investments in my ISA accounts. I’m doing this for two reasons.

Firstly, I want to make sure they’re still appropriate for my goals and risk tolerance and that they’re still good investments. I may end up making a few tweaks here and there to optimise my portfolio.

Secondly, having a good understanding of my portfolio will help me make better decisions in relation to where to invest the fresh money in my ISA accounts.

Looking for top investment opportunities

Finally, I’m looking for opportunities for my fresh capital. One UK stock I’ve got my eye on as we approach the ISA deadline is Diageo (LSE: DGE).

It’s the owner of Johnnie Walker, Tanqueray, Smirnoff and a ton of other well-known spirits brands.

Diageo’s faced a few challenges recently. For example, in Latin America and the Caribbean, its sales have been lower than expected.

I expect the company – which has an excellent long-term track record – to work through these challenges though.

And taking a long-term view, I’m confident the company will grow as the global population expands and wealth rises in the emerging markets.

Of course, there’s no guarantee that the shares will perform well going forward. With a global company like this, there are plenty of things that can go wrong (eg Red Sea shipping delays).

But a lot of uncertainty seems to be priced into the stock already (it’s down around 30% from its highs).

And with the shares trading on a forward-looking price-to-earnings (P/E) ratio of 18.7 and offering a dividend yield of nearly 3%, I think the set up is attractive.

I may use some of my ISA cash to add to my holding here.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Edward Sheldon has positions in Diageo Plc. The Motley Fool UK has recommended Diageo Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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