ISA Allowance 2016/17 - The Share Centre

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Tax allowances and the benefits of tax-efficient accounts could change.

ISA allowance

How much can you invest and save
in your ISA 2016/17?

Your ISA allowance (or ISA limit) determines how much you can invest in ISAs each tax year (from 06 April one year to 05 April the next). It is set by the Government and often increases each year, although you don't have to use it all if you don't want to. From 06 April 2016, you can split your ISA allowance between a Stocks & Shares ISA, a Cash ISA and an Innovative Finance ISA if you wish to.

Your ISA limit 2016/17 is £15,240

You can invest the whole of your 2016/17 ISA allowance in a Stocks & Shares ISA or save it all in either a Cash ISA or an Innovative Finance ISA (please note we do not offer Cash ISAs or Innovative Finance ISAs). You can also split your allowance across the three types, in any combination. Let's have a look at the different ways you could use it:

Using your 2016/17 ISA allowance Stocks & Shares ISACash ISAInnovative Finance ISATotal 2016/17 ISA allowance
Invest in a Stocks & Shares ISA only £15,240 (maximum) £0 £0 £15,240
Invest in a Stocks & Shares ISA and save in a Cash ISA and/or an Innovative Finance ISA Split your allowance however you choose, as long as the combined amount doesn't exceed £15,240 £15,240
Invest in a Cash ISA only £0 £15,240 £0 £15,240
Invest in an Innovative Finance ISA only £0 £0 £15,240 £15,240

Stocks & Shares ISA vs Cash ISA

Making the most of your 2016/17 ISA Allowance

Your ISA allowance is a great benefit. Here are a few ways to get the best out of it: 

  • Use it or lose it! Your 2016/17 ISA allowance won't roll over to next tax year.
  • Make sure you pay in some money before the end of the tax year. You can invest it later if you haven't decided yet.
  • Invest at the beginning of the tax year each year (6 April) to get maximum benefit.
  • Continue adding to your ISA each tax year by using your new ISA allowances.
  • Encourage your partner to invest their 2016/17 ISA allowance as well.

Investing more than your 2016/17 ISA limit

Your ISA allowance isn't based on your investments' growth or interest; simply the amount you invest or save. If you reach your 2016/17 ISA limit, you can't invest or save any more money in an ISA until the start of the next tax year. And remember, you can only subscribe to one Cash ISA, one Stocks & Shares ISA and one Innovative Finance ISA each tax year.

The simple solution if you want to invest more than your 2016/17 ISA allowance is to simply open a Share Account in addition to your ISA. You'll have to pay tax on any earnings, but there aren't any investment limits, so you can invest as much as you like.

Flexible ISAs: replacing withdrawn money

From the start of this tax year (6 April 2016) we are offering the Government’s new flexible ISA facility. This allows you to replace withdrawn money without it counting towards your ISA allowance, as long as you do it in the same tax year.

Additional permitted subscriptions (APS)

You may be entitled to an additional permitted subscription (APS) if your spouse or civil partner dies. This is equal to the value of your deceased spouse’s ISAs and enables you to invest this money tax-efficiently, in addition to your own 2016/17 ISA allowance. Such additional permitted subscriptions are only available for a limited time period related to your spouse’s estate. If your spouse’s ISA was held with the Share Centre, you can open a new ISA with us to use your APS. Where you inherited their ISA assets, these can be transferred into your new ISA (subject to market value), or you can fund the APS with your own cash. Even if your spouse's ISA was held elsewhere, you can open a new ISA with us to use your APS, however you will only be able to make cash subscriptions.

Junior ISA allowance 2016/17 is £4,080

You can invest the whole of your child's 2016/17 ISA allowance in a Stocks & Shares Junior ISA or save it all in a Cash Junior ISA (please note we do not offer Cash Junior ISAs). You can also split the allowance across the two, in any combination. And remember, keen savers aged 16-18 can save £15,240 in a normal Cash ISA as well as as paying into a Junior ISA in the 2016/17 tax year! Please bear in mind that your child cannot hold both a Child Trust Fund and a Junior ISA, however it is now possible to transfer their Child Trust Fund into a Junior ISA.

Coming next tax year

Lifetime ISAs are Individual Savings Accounts which the Government will be launching to help young people (18-40 year-olds) invest/save flexibly for the long term. The aim is that you will not have to choose between saving for your first home and retirement. You can use some or all of the money to buy your first home, or keep it until you’re 60 - it’s up to you. Similar to normal ISAs, you won't have to pay any Capital Gains Tax or further Income Tax on profits you make. If you're not a first time buyer, or prepared to wait until you're 60 to access your savings, Lifetime ISAs will not be beneficial for you.

Self Select ISA Provider 2017

Self Select ISA Provider 2017

Self Select ISA Provider of the year 2017 at the ADVFN awards.