Your ISA allowance

Each tax year, you’re allowed to pay a certain amount of money into an ISA – this is called your ISA allowance.

The tax year runs from 6 April to 5 April and for the 2017/18 tax year the ISA allowance is £20,000 for adult ISAs and £4,128 for Junior ISAs.

You can pay less than that in, but if you don’t use your annual allowance it doesn’t roll over to the next year, unfortunately. Dependent on your account terms, you can make several smaller payments up to the maximum total, rather than paying your full allowance in all at once.

Split your ISA allowance

Each tax year, you can put your allowance into a Cash ISA, a Stocks & Shares ISA, an Innovative Finance ISA, a Lifetime ISA  (if eligible, up to a maximum of £4,000 per year) or a combination of the four. It’s up to you how much you put in each, as long as you don’t go over the total allowance between the four of them.

Build up the benefits

When the tax year ends, you’re allowed to leave your previous years’ allowances in your ISAs. For Cash ISAs and Innovative Finance ISAs, this means the interest on your full balance will be tax-free. For Stocks & Shares ISAs this means any returns on the full amount in your ISA will be tax-efficient (you won’t pay personal income or capital gains tax on them). 

Anything else you'd like to know?

As savings specialists, we’re fully up to speed on what’s happening with Cash ISAs and Lifetime ISAs so we can talk you through everything. In 2016, we won Best Cash ISA Provider and Best Savings Provider in the MoneySuperMarket Supers Awards. So, if you use your ISA allowance in a Skipton Cash ISA or Lifetime ISA, you can be sure you’re putting your money in capable hands.

Need help?

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