The UK government determines the maximum amount you can invest in Individual Savings Accounts (ISAs) annually. It has been set at £20,000 for the 2022/2023 tax year, just like in every year since 2017. This is known as the ISA allowance. The limits are set for all ISAs combined, not for individual accounts, so you can have several different types of accounts at one provider in the same year, all within the same ISA wrapper.
For example, you can save £12,000 in a cash ISA, £3,000 in a stocks and shares ISA, £1,000 in an innovative finance ISA, and £4,000 in your Lifetime ISA in the same tax year. Be aware however that the maximum you can invest in your Lifetime ISA is £4,000 per tax year.
However, you don’t need large sums to start an ISA: some providers will allow you to open an ISA with as little as £1.
It is important to keep in mind that any unused allowance does not roll over to the next tax year, so if you don’t use it, you will lose it. You will get a new allowance on 6 April of each year, the start of the new tax year, but you will not be able to add any money to the old ISA from the previous tax year.
- Everything you wanted to know about ISAs
- What is an ISA allowance?
- What is an ISA: an in-depth guide to tax-advantaged savings for UK residents
- What is an ISA: a guide to tax-free savings in the UK
- How many ISAs can I have?
- What is a stocks and shares ISA?
- What is a Lifetime ISA and how best to use it?
- How to open a Lifetime ISA
- What is a cash ISA?
- What is a Junior ISA?
- What is a flexible ISA?
- What is an Innovative Finance ISA?
- How to transfer your ISA?
- How does an ISA work?
- Which is the better investment: pension or ISA?
- Is ISA only for UK citizens?
- What is the safest ISA?
- What happens to my ISA if I move abroad?
- Does an ISA beat inflation?
- Interest on cash ISA: much do they pay?
- IBKR offers global access with local benefits for ISA holders