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FAQs – Making the most of your ISA allowance


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FAQs – Making the most of your ISA allowance

The UK tax year runs from 6 April until 5 April the following year. At the start of each new tax year, allowance limits for Individual Savings Accounts (ISAs) reset, meaning that now could be a good time to review your investments.

Hayley Spendlove
Hayley Spendlove

Please note that EFG Harris Allday does not provide tax advice and you should seek such advice from your professional advisors as appropriate.

How much can you invest in an ISA? 

You can invest up to £20,000 into ISAs held within your name each tax year. 

Can you open more than one type of ISA each year? 

You can open one of each type of adult ISA – a cash ISA, and a stocks and shares ISA. Cash ISAs may vary, offering fixed or variable rates of interest for up to one, two or five years. 

Historically, stocks and shares ISAs have outperformed cash ISAs, however what’s right for you will depend upon how long you wish to invest for, when you will need the funds, and how much risk you are willing to take. 

Whether you have one or two types of ISA, you can only put a total of £20,000 into ISAs held in your name each tax year.  

Why should I maximise my allowance? 

An ISA is a tax efficient investment. The money held within an ISA is protected from income tax, capital gains tax (CGT) and dividend income tax. Investing into an ISA means that your investments can start to build interest without being subject to tax. If you don’t use your ISA allowance in a single tax year, you’re unable to carry the allowance over into the following year.   

How much could you pay into someone else’s ISA? 

The annual allowance limit applies to the person who owns the ISA, rather than the individual putting the money in. This means that you could gift up to £20,000 into some else’s ISA, such as a partner or spouse - without affecting your own limit. 

Should I open a JISA for my children?

A Junior ISA (JISA) can be a great way of saving towards your child’s future. You can invest up to £9,000 into a JISA for each child, each year.

A parent or guardian can open a JISA on behalf of a child, and the money held in a JISA will be held in the child’s name, which will not affect your £20,000 allowance. 

Grandparents and parents can make the most of their monetary gifts, helping to provide children with their journey into adulthood. Conversations about money are essential, as once a child turns 18, their JISA will mature to an adult ISA – and they will have full responsibility for the money held.


At EFG Harris Allday we work with a range of individuals and families across the UK. We support our clients throughout their changing life circumstances, helping to grow their funds for retirement, and to support the next generation. 

If you are looking to utilise your remaining ISA allowance for the 2023/2024 tax year, please email us at [email protected]. Alternatively, you can contact your Investment Manager for further support. 

Past performance is not a guarantee of future performance. You may receive back less than you invest.