Utilising the ISA Allowance

As the tax year is coming to an end, you may wish to review your ISA accounts to see if these can be topped up before the end of the current tax year (5 April 2025). The ISA allowance 2024/2025 remains at £20,000.

Each tax year an individual can save up to £20,000 into ISAs this can be done into a single or multiple accounts. For example, an individual can invest £12,000 into a stocks and shares ISA and £8,000 into a cash ISA.

The limit an individual can pay into a lifetime ISA is £4,000. The ISA allowance for Junior ISAs for the tax year is £9,000.

The most common ISA accounts are Cash ISAs and Stocks and Shares ISAs. Unlike other bank accounts, cash ISAs offer tax free interest on the money that you save.

Stocks and Shares ISAs are an investment account whereby you do not pay any money you earn or Capital Gains Tax on any chargeable disposals made.

The cut off for ISA contributions is midnight April 5.

If you wish to know more on this, please feel free to get in touch with Danny Hockin on 023 8202 7481, or email Danny Hockin.