How much can I put into an ISA?

Here’s information about the annual allowance that dictates how much you can put into an ISA each year.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

An ISA is a means of saving or investing that is not subject to tax that may be levied on other types of account. As such, an ISA can help to improve your financial outlook through reducing the amount of tax you pay on your cash or investments. There are, though, limits on how much you can invest in the different types of ISA each year. Read on to find out what these limits are for the range of ISAs available.

Annual allowances for different ISAs

You can contribute up to £20,000 per year across the following five types of ISA. This £20,000 can be apportioned however you please, although there is a restriction on Lifetime ISAs, of £4,000 per year, and on Help to Buy ISAs, of £2,400 per year.

  • Cash ISA: essentially a savings account that is not subject to income tax.
  • Stocks and Shares ISA: provides the opportunity to invest in listed companies and a variety of other assets such as bonds. No capital gains, income tax or dividend tax is applied on amounts invested through a Stocks and Shares ISA.
  • Innovative Finance ISA: used for peer-to-peer lending. Cash is lent to other individuals as part of a peer-to-peer network. This ISA is also not subject to income tax.
  • Lifetime ISA: can be used to fund the deposit on a first home or can be withdrawn without penalty after the age of 60. The annual contribution limit is £4,000 per year. A government bonuses is added that amounts to 25% of contributions per year, up to a limit of £1,000 per year. 
  • Help to Buy ISA: can be used to purchase a first home. Up to £2,400 may be invested per year. This ISA also benefits from government bonuses that amount to 25% of contributions per year, up to £600 in bonuses per year.

In addition to the types of ISA above, there is also the Junior ISA, the annual allowance for which is separate from the combined £20,000 allowance for the other types of ISA:

  • Junior ISA: up to £4,368 can be invested per year on behalf of a child, who then takes control of the ISA at the age of 18. The annual allowance for a Junior ISA is separate from the combined £20,000 allowance for the other types of ISA. A Junior ISA benefits from the same tax advantages as a Stocks and Shares ISA.

Do repayments count towards annual allowance?

Some ISAs are flexible. They allow cash to be withdrawn and paid back within the same tax year without reducing the annual allowance.

Other ISAs, though, are not flexible. The annual allowance is fixed and amounts withdrawn above the £20,000 allowance per year cannot be repaid in full within the same tax year.

Whether an ISA is flexible or not depends on the provider, so it is worth checking this before applying.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

MyWalletHero, Fool and The Motley Fool are all trading names of The Motley Fool Ltd. The Motley Fool Ltd is an appointed representative of Richdale Brokers & Financial Services Ltd who are authorised and regulated by the FCA, and we are permitted in this capacity to act as a credit-broker, not a lender, for consumer credit products (our FRN is 422737). The Motley Fool Ltd does not have permissions for, and does not advise on, investment products and services, but may provide information on investment products and services.

The Motley Fool receives compensation from some advertisers who provide products and services that may be covered by our editorial team. It’s one way we make money. But know that our editorial integrity and transparency matters most and our ratings aren’t influenced by compensation. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. The Motley Fool has recommended shares in Lloyds, Tesco and Barclays.

More on Personal Finance

Note paper with question mark on orange background
Personal Finance

Should you invest your ISA in a model portfolio?

Which model ISA portfolios offer both high performance and low fees? Hargreaves Lansdown, Interactive Investor and AJ Bell go under…

Read more »

Economic Uncertainty Ahead Sign With Stormy Background
Personal Finance

Is it time to exit emerging markets investments?

Investors may well be sitting on losses from emerging markets funds. Is it worth keeping the faith for a sustained…

Read more »

Personal Finance

Share trading? Three shares with turnaround potential

Share trading has been difficult in 2022, but which companies have turnaround potential? Jo Groves takes a closer look at…

Read more »

Man using credit card and smartphone for purchasing goods online.
Personal Finance

Revealed! Why Gen Z may be the savviest generation when it comes to credit cards

New research reveals that Gen Z may be the most astute when it comes to credit cards. But why? And…

Read more »

Environmental technology concept.
Personal Finance

The 10 best-performing sectors for ISA investors

The best-performing sectors over the past year invested in real assets such as infrastructure, but is this trend set to…

Read more »

Road sign warning of a risk ahead
Personal Finance

Recession risk ‘on the rise’: is it time for investors to worry?

A major global bank has suggested the risk of a recession in the UK is 'on the rise'. So, should…

Read more »

pensive bearded business man sitting on chair looking out of the window
Personal Finance

1 in 4 cutting back on investments amid cost of living crisis

New research shows one in four investors have cut back on their investing contributions to cope with the rising cost…

Read more »

Image of person checking their shares portfolio on mobile phone and computer
Personal Finance

The 10 most popular stocks among UK investors so far this year

As the new tax year kicks off, here's a look at some of the most popular stocks among UK investors…

Read more »