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What Is The 2023/24 ISA Allowance?

Putting money into an ISA is a highly tax-efficient and flexible way to save for your future. The great advantage is that you won’t have to pay any Income Tax or Capital Gains Tax on the growth within the fund or the income you withdraw.

These tax benefits have made ISAs a popular choice for saving and financial planning. However, it’s important to be aware of the ISA allowance.

ISA Allowance For 2023/24

The government sets a limit on how much you can contribute to your ISA or ISAs in a given tax year, which runs from 6 April to 5 April. The ISA allowance for 2023/24 is £20,000.

For Junior ISAs, the limit for 2023/24 is £9,000.

Maximising Your ISA Allowance

If you have multiple types of ISAs, such as a Cash ISA and a Stocks and Shares ISA, you can allocate your ISA allowance between them. Alternatively, you can invest the full £20,000 in a single ISA.

However, it’s important to note that you cannot contribute to more than one Stocks and Shares ISA in the same tax year, nor can you invest in more than one Cash ISA in a given tax year. Nevertheless, you can open a new ISA of any type with a new provider each tax year.

If you have a Stocks and Shares ISA, depending on your circumstances[CW1] , it may be wise to make regular payments throughout the year rather than a lump sum just before the end of the tax year (5 April). By doing so, you can mitigate the impact of market fluctuations, avoiding the risk of investing a large sum when the market is down.

If you’re a married couple, you can collectively invest up to £40,000 in ISAs, enjoying tax-free benefits.

Keep in mind that you have the flexibility to choose how much of the £20,000 allowance you want to invest each year. However, it’s important to note that you cannot carry over any unused allowance to the following year.

ISA Allowance For 2023/24:

For Junior ISAs (JISAs), the allowance is £9,000. Parents, grandparents, family members, and friends can contribute to JISAs, but only parents or legal guardians can open them.

For individuals aged 18 or over, the limit is £20,000 for ISAs in 2023/24.

If you’re under 18, you can invest up to £9,000 in a JISA. However, if you’re 16 or older, you can also invest up to £20,000 in a Cash ISA for 2023/24.

The value of your investment in an ISA will be directly tied to the performance of the selected funds and may decrease as well as increase. It’s possible to receive less than the amount invested. Please note that a Stocks & Shares ISA does not offer the same capital security as a Cash ISA.

The favourable tax treatment of ISAs is subject to potential changes in legislation and may not be guaranteed in the future.

What Take Advantage Of The ISA Allowance?

Taking advantage of the ISA allowance offers several benefits:

Tax Efficiency

One of the key advantages of utilising the ISA allowance is the tax benefits it provides. Any growth within the ISA fund and the income you withdraw from it are exempt from Income Tax and Capital Gains Tax. This means that you can maximise your savings without having to give a portion of your earnings to the tax authorities.


ISAs offer flexibility in terms of how you save and invest. There are various types of ISAs available, such as Cash ISAs, Stocks and Shares ISAs, Innovative Finance ISAs, and Lifetime ISAs. Each type caters to different investment preferences and goals, allowing you to choose the option that best suits your needs.


By utilising the ISA allowance, you have the opportunity to diversify your investments across different types of ISAs. For example, you can invest in both Cash ISAs and Stocks and Shares ISAs, spreading your savings across different asset classes. This diversification helps mitigate risk and increases the potential for returns.

Lifetime Savings

ISAs are designed to encourage long-term savings and financial planning. By consistently contributing to your ISA each year and taking advantage of the allowance, you can accumulate substantial savings over time. This can be particularly beneficial for major life goals, such as buying a home, funding education, or preparing for retirement.

Protection Against Future Tax Changes

The tax benefits associated with ISAs are subject to potential changes in legislation. By utilising the ISA allowance now, you can benefit from the current tax advantages and protect your savings from potential future tax reforms that could reduce or eliminate these benefits.

Overall, taking advantage of the ISA allowance allows you to save and invest in a tax-efficient and flexible manner, providing you with greater financial security, potential growth, and the ability to achieve your long-term financial goals. As with any area of finance it’s important to take regular financial advice on your savings and investments, to ensure you’re making the most of them.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

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