ISA allowance information.

How the ISA allowance works

There is an annual limit on how much you can put into an ISA in a tax year.

Flexible cash ISA rules allow you to withdraw money and replace it later in the same tax year, without losing any of your tax-free entitlement, providing you don’t exceed the £20,000 limit by the end of the tax year.

Your ability to withdraw and replace funds may be limited by the particular account conditions of your ISA, for example, if you have a Help to Buy: ISA as you can only deposit £200 a month.

For example:

  • If you pay £10,000 into your cash ISA, you would then have another £10,000 that you could pay in to reach your maximum allowance of £20,000.
  • If you took out £2,000, leaving £8,000 in your ISA, you could put £2,000 back in to your account and still have £10,000 of your allowance remaining for this tax year.

You can't carry any unused amount over to a new tax year - the ISA allowance simply resets back to the annual allowance again on 6th April.

What are the ISA rules and limits?

The total amount you can save in ISAs in the 2017/18 tax year is £20,000. You can choose to use your ISA allowance in a cash ISA, a stocks and shares ISA, an innovative finance ISA, a lifetime ISA or any combination of the four as long as you don't exceed the annual allowance. Withdrawn funds can be replaced within the same tax year under the Flexible ISA rules, providing you don’t exceed the overall limit of £20,000 by the end of the tax year.

The Help to Buy: ISA allowance is lower than the overall ISA allowance. The monthly limit for the Help to Buy: ISA is £200. For more information on how this limit works look at our Help to Buy: ISA. You can only pay into one cash ISA per tax year, so any remaining allowance can be invested in a stocks and shares ISA and/or an innovative finance ISA and/or a lifetime ISA (up to the lifetime ISA limit).

Here are some examples of how the ISA allowance could be used:

Cash ISA

Stocks and Shares ISA

Total ISA Allowance

Example 1

£0

£20,000

£20,000

Example 2

£10,000

£10,000

£20,000

Example 3

£20,000

£0

£20,000

Example 1


Cash ISA

£0

Stocks and Shares ISA

£20,000

Total ISA Allowance

£20,000

Example 2


Cash ISA

£10,000

Stocks and Shares ISA

£10,000

Total ISA Allowance

£20,000

Example 3


Cash ISA

£20,000

Stocks and Shares ISA

£0

Total ISA Allowance

£20,000

You can only open and pay money into one cash ISA and/or one stocks & shares ISA and/or one innovative finance ISA and/or one lifetime ISA each tax year.

View our range of ISAs


Tax treatment depends on your individual circumstances and may change.