ISA rules & limits
The earlier and the more you add to your ISA the better. But the crucial thing to remember is that every tax year – which runs from 6th April one year to 5th April the next year – you’re only allowed to invest a certain amount in an ISA. This is known as your annual ISA allowance.
Right now, it’s a total of £10,680 – made up from just the money you pay in, not the interest or growth earned. This amount can be split in a few ways.
For example: you can save a maximum of £5,340 in one cash ISA. The other £5,340 could go into a stocks and shares ISA with the same provider like Halifax, or a different one.
Alternatively, invest the full £10,680 in just a stocks and shares ISA. It’s up to you.
Here are some examples of how it could work:
| Cash ISA | Stocks and Shares ISA | Total ISA Allowance |
| £1,680 | £9,000 | £10,680 |
| £3,480 | £7,200 | £10,680 |
| £5,340 (maximum cash allowance) | £5,340 | £10,680 |
| £0 | £10,680 (maximum stocks and shares allowance) | £10,680 |
Transferring money
As well as currently being able to invest your full ISA allowance of £10,680 in a stocks and shares ISA, you can also transfer some or all of the money held in previous tax year cash ISAs into a stocks and shares ISA. A stocks and shares investment is a medium to long term investment, but remember the value of your investment can go down as well as up, and you may get back less than you originally invested, and that tax rules may change in the future and taxation will depend on your personal circumstances.
