ISA allowance
Important information - please keep in mind that the value of investments can go down as well as up, so you may get back less than you invest. Tax treatment depends on individual circumstances and all tax rules may change in the future. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. Withdrawals from a Junior ISA will not be possible until the child reaches 18.
What is the ISA allowance?
The ISA allowance in a nutshell is how much a person can put into their ISA each tax year. The ISA allowance for this year is £20,000. The tax year runs from the 6 April to 5 April the following year. And you have until midnight to invest your money. If you do not use all your ISA allowance in one year, you’re not able to carry this allowance over to the next year so it’s important to make the most of each tax year.
The best way to think of an ISA is as a tax 'wrapper'. Each year, you're entitled to a specific allowance or limit, which is protected by the ISA wrapper. This means you won't be charged tax on the interest or capital gains you earn, offering greater growth potential on your investments, although this is not guaranteed.
If you’ve been wondering what the benefits of a Stocks and Shares ISA are (also known as an investment ISA), take a look at this short video.
Here you’ll learn why ISAs are a tax-efficient way to save, what the annual ISA allowance is and even how many you can have.
ISA Calculator
Our ISA calculator can help you understand how much your savings could grow. Calculate how investing in a Stocks and Shares ISA could benefit you.
Is the ISA allowance the same for a Junior ISA?
The ISA allowance differs for an ISA and a Junior ISA - the Junior ISA allowance is £9,000 a tax year as opposed to £20,000 a tax year. Below we have broken down the important information for you to be aware of.
Stocks and Shares ISA
- For the current tax year the ISA allowance is £20,000
- Choose from a wide range of funds, shares, exchange-traded funds (ETFs) or investment trusts
- If you don’t use all of your ISA allowance before the end of the tax year it is lost
Junior ISA
- For the current tax year the Junior ISA allowance is £9,000
- You can only have one Stocks and Shares Junior ISA at any one time
- Choose any combination of funds, shares, exchange-traded funds (ETFs) or investment trusts
- If you don’t use all of your child’s Junior ISA allowance before the end of the tax year it is lost
- Withdrawals from a Junior ISA will not be possible until the child reaches age 18
More ISA allowance information
No, transferring your ISA doesn’t count towards your ISA allowance for that given year. Find out more about a Fidelity ISA transfer.
You can inherit your spouse or civil partner's ISA allowance. As well as the normal yearly allowance you can add a tax-free amount up to either the value the individual had in their ISA at the time of their death, or the value of their ISA when it's closed. Contact the ISA provider for more information.
Yes, you can split your ISA allowance of £20,000 across your Stocks and Shares ISA and your Cash ISA, if you have both. There are no set rules in place as to what percentage you have to split them, so this can be any proportion you like. It’s important to note you only get one ISA allowance, it is not one allowance for each ISA you have.
