What is the 2024/25 ISA allowance?

What is the annual ISA allowance?

The annual ISA allowance is the maximum amount of money you can put away in ISAs each tax-year. As of the 2024/25 tax-year, this threshold stands at £20,000, having gone unchanged since 2017.

When does the new ISA year start?

Your ISA allowance resets at the start of each tax-year.

The 2024/25 tax-year begins on 6 April 2024 and runs until 5 April 2025.

Who qualifies for an ISA allowance?

From April 2024, the Government is looking to 'harmonise ISAs' so only UK residents and Crown servants aged 18 or over will be able to open an adult ISA and qualify for the £20,000 allowance.

However, there may be a transition period during which those aged 16 and 17 are still be able to apply for an adult account (but not all providers may allow this).

Junior ISAs will remain available, and can be opened by or on behalf of those under the age of 18.

What is the Junior ISA allowance?

Junior ISAs (JISAs) come with their own annual allowance which currently stands at £9,000 for the 2024/25 tax-year. This lets you make contributions to a child or grandchild’s account without it depleting your own ISA allowance.

Children can hold a subscription to one Junior cash ISA and one Junior stocks and shares ISA per tax-year.

How many ISAs can you have?

There’s no limit on the number of ISAs you can have.

Previously, you could only open and fund one of each of the four main types of ISA per tax-year (i.e. one cash ISA, stocks and shares ISA, Lifetime ISA and Innovative Finance ISA IFISA).

This changed when the Chancellor of the Exchequer, Jeremy Hunt, unveiled ISA reforms in the Government’s Autumn Statement 2023. As part of these reforms, Hunt announced multiple subscriptions to ISAs of the same type would be permitted from April 2024.

For instance, this means you could open and pay into both an easy access and fixed rate cash ISA within a tax-year, so long as you don’t breach your overall £20,000 allowance. Alternatively, you could use multiple stocks and shares ISAs to invest in different assets.

What is the Lifetime ISA allowance?

Lifetime ISAs (LISAs) are an exemption to recent reforms; while it’s possible to hold multiple LISAs you can still only open and pay into one of this type of account per tax-year.

Furthermore, although they come with their own limit of £4,000, it should be noted any contributions into a LISA count towards your overall ISA allowance.