What's your ISA allowance? How much can you invest?
The Government sets an annual ISA allowance (ISA limit) on how much you can invest in an ISA each tax year. This year (6 April 2015 to 5 April 2016), your ISA allowance is £15,240 and the full amount can be invested in a Stocks & Shares ISA or a Cash ISA (or any combination of the two). Please note, The Share Centre does not offer Cash ISAs.
Unused ISA allowances don't roll over to the next tax year if you don't invest the full amount, so it’s a case of ‘use it or lose it’. However, your ISA itself doesn't end when the tax year does, so you can keep adding to it each year and get the benefits on the cumulative amount. Don't forget to invest your ISA allowance at the start of the tax year (6 April) to make the most of it.
Who can open a Stocks and Shares ISA?
To open a Stocks and Shares ISA:
- You must be aged 18 or over.
- You need to be a UK resident.
- You must not have already opened a Stocks and Shares ISA in the same tax year.
You can sell your investments and withdraw money from your Stocks and Shares ISA at any time. Just remember that paying money back into your ISA will depend on how much you've already subscribed in the current tax year. For example, if you've already paid in your whole ISA allowance for the year, you won't be able to pay any money back in until the next tax year.
Transferring your ISA to us
You can easily transfer any existing ISAs you have with other providers to us. We’ll even pay up to £300 towards any costs you may incur (conditions apply). Whatever you do, don't withdraw your money since you'll lose the tax benefits. Simply complete an ISA transfer form or call us on 08456 185 185.
Please note that an existing cash ISA will need to be converted into a Stocks and Shares ISA when transferring to us, and it could take up to four weeks to process your transfer.
ISAs were introduced by the UK Government in 1999 to encourage us to save and invest for the long term. They replacedPersonal Equity Plans (PEPs) and Tax-Exempt Special Savings Accounts (TESSAs). Mini and Maxi ISAs were phased out in the 08/09 tax year due to being unnecessarily complicated.