Your annual ISA allowance for the 2023/24 tax year

The new tax year begins on the 6th April 2023. Read about the maximum allowances for all the different types of ISAs, and answers to most common questions.

Last updated March 2023.

We're beginning to approach the new tax year for 2023/24 which means that you may be thinking about how much you can invest into your Individual Savings Account (ISA) to take advantage of the tax benefits.

ISA stands for ISA stands for Individual Savings Account. The main difference between an ISA and any other savings account is that it offers tax-free interest payments, meaning you could get more for your money by saving in one compared to a standard cash savings account.

Learn more about ISAs and what the tax benefits are.

What is my 2023/24 ISA allowance and when will it reset?

Your personal ISA allowance for the 2023/24 tax year is £20,000, the same as the previous tax year. This means that if you were to put £20,000 of your money into ISAs, you wouldn’t need to pay any tax on any interest or profits earned from your savings and investments.

Your ISA allowance will always reset annually at the beginning of the new tax year, which is always the 6th April.

Can I pay into different ISAs within the same tax year for 2023/24?

Absolutely! You have the option to invest your money into multiple ISAs. However, the total amount you can have within these ISAs has to be no more than £20,000, which is the maximum allowance for the 2023/24 tax year.

There are several ISAs which you could invest in, however, the most common ones are:

·      Stocks and Shares ISA

·      Cash ISA

·      Lifetimes ISA (LISA)

·      Innovative Finance ISA 

Will I get a £20,000 allowance per ISA?

Your ISA allowance is £20,000 in total. This means that if you were to invest into multiple ISAs such as a Cash ISA, a Stocks & Shares ISA, an Innovative Finance ISA and a Lifetime ISA (LISA), you cannot exceed your yearly allowance of £20,000 across these products.

It’s totally up to you whether you would want to split your yearly allowance into one or more of these different types of ISAs. If you decide to choose just the one ISA, you can invest up to £20,000 (apart from a LISA which has a limit of £4,000 due to government bonuses). However, if you decide to invest into a combination of different ISAs, your yearly allowance will need to be split across the different types of ISAs. 

If I don't use my yearly ISA allowance, can I carry it over to the next tax year?

You cannot carry over the current tax year’s ISA allowance over to the next tax year which begins on the 6th April 2023. Any allowance not used up by midnight 5th April 2023 will be lost.

If I already have an ISA, am I able to transfer it to another provider?

Yes, you’re able to transfer your ISA to another provider if you find that they may be better than the one you currently have. To transfer an ISA in the current tax year to a different provider, you would need to transfer all your contributions made in that tax year to the provider you wish to hold your new ISA with.

The money which you’ve invested in previous tax years can also be transferred, but the amount you wish to transfer is up to you. Meaning you could either transfer all or part of your savings.

If you decide to transfer your ISA, you would need to get in touch with your ISA provider and fill out a form. Keep in mind that some providers can charge a fee when you decide to transfer.

To see whether transferring to OpenMoney would be a good option for you, you can try our free transfer review to see if it’s in your best interests.

When and how can I start investing into my ISA?

For the tax year 2023/24, you can start using your new allowance on April 6th 2023. To see if investing into a Stocks & Shares ISA is right for you, take our step-by-step online advice questionnaire - it's free and without obligations. We’ll tell you what product and portfolio you should invest in to reach your financial goals.

Historical annual ISA allowances

This table of history displays the annual ISA allowances over the last 10 years.

This table of history displays the annual ISA allowances over the last 10 years.

Always remember that when you’re investing, your capital is at risk.

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