At a glance

What is the annual ISA allowance?

Individual Savings Accounts (ISAs) Limits

Individual Savings Accounts (ISAs) are tax-free savings accounts for qualifying individuals.  

  • Types of accounts include cash ISA, stocks & shares ISA, Junior ISA and Help to Buy ISA 
  • All interest and dividends received and capital gains made are tax free.
  • ISAs form part of the taxable estate on death.
  • From April 2016 the Innovative Finance ISA is introduced.
  • From April 2017 the Lifetime ISA is introduced.

ISA Investment Limits

  • In 2017/18 onwards the maximum amount that can be invested into a cash or stocks & shares ISA is £20,000 (£15,240 for 2015/16 and 2016/17)
  • Since 2015/16 this overall allowance can be invested into any combination of cash or stocks & shares.
  • In earlier years there was a limit to how much of the overall allowance could be invested in cash.
  • Funds withdrawn from an ISA can only be reinvested within the normal investment limits.
  • From 6 April 2016 cash withdrawn from an ISA earlier in a year can be replaced without counting towards the annual ISA subscription limit.
  • Following the introduction of the innovative finance ISA on 6 April 2016, the overall allowance can be invested into any combination of cash, stocks & shares or innovative finance.
  • The investment limit for Junior ISAs and Child Trust Funds increases to £4,128 from 6 April 2017.

ISA Investment Limits

Annual ISA subscription limit: 2018/19 2017/18

2015/16 to 2016/17

1/7/2014 to 5/4/15

6/4/14 to 30/6/2014

£

 2013/14

£

2012/13

£

2011/12

£

2010/11

£

Overall (Adult) 20,000 20,000 15,240 15,000 11,880 11,520  11,280

10,680

10,200

Cash ISA 20,000 20,000 15,240 5,940 5,940 5,760   5,640

5,340

5,100

Stocks & shares ISA

20,000 20,000 15,240 15,000 11,880 11,520  11,280

10,680

10,200

Innovative finance ISA

(from 6 April 2016)

20,000 20,000 15,240            

Junior ISA

(from 1 November 2011)

4,260 4,128 4,080 4,000 3,840 3,720  3,600

3,600**

 -

Help to Buy ISA

(from 1 December 2015)

£200 per month

plus £1,000

 

£200 per month

plus £1,000

£200 per month

plus £1,000

           

Lifetime ISA

(from 6 April 2017

4,000 4,000              

 

See ISAs (subscriber guide) for full details.

Junior ISAs

  • A Junior ISA is a long term savings fund and interest in the ISA rolls up tax-free.
  • Junior ISA is available to UK resident children under the age of 18 who do not already have a child trust fund.
  • It can be split into cash and shares.
  • Where parents give children income producing assets, such as cash or shares, any income earned on those assets (such as interest or dividends) in excess of £100 per year is taxable as the parent's, under the income tax Settlement provisions.
  • The Settlement provisions do not apply to gifts made by grandparents or other relatives, however there is case law which should be considered when grandparents are being used as an avoidance mechanism by parents wishing to attempt to circumvent the rules.

Updates


Updates

29/03/2017 Updated for 2017/18 limits

07/03/2017 Updated rates per SI 2017/186

20/09/2016 Updated for Finance Act 2016 changes.