Every tax year, you get an allowance of £20,000 to save or invest into your ISAs. These can be a Cash ISA, a StocksStocks, also known as shares or equities, represent units of ownership in a company. & Shares ISA, or a Lifetime ISA. There are other types of ISA, like Innovative Finance ISAs – but we don’t offer those at Moneybox.
While these ISAs share an annual £20,000 allowance, each type of ISA has different annual deposit limits. Here’s a quick breakdown of how your annual £20,000 ISA allowance works and the different amounts you can deposit into each type of ISA in a single tax year.
- Cash ISA and Stocks & Shares ISA: £20,000 each tax year
- Lifetime ISA: £4,000 each tax year
- Junior ISA: £9,000 each tax year (this £9,000 is in your child’s name, and does not come out of your personal £20,000 annual ISA allowance)
So, if you maxed out your Lifetime ISA with £4,000 in a tax year, you’d have £16,000 remaining to split between your other ISAs. You could put £10,000 of that into a Cash ISA, and £6,000 into a Stocks & Shares ISA. Or, if you paid £20,000 into your Stocks & Shares ISA, you’d have no remaining annual allowance for your Cash ISA or Lifetime ISA until your allowance resets next tax year.
