Interactive Investor

ISA allowance 2021/22

Take advantage of this year's ISA allowance and invest up to £20,000 tax-free in 2021/22.

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Important information - investment value can go up or down and you could get back less than you invest. If you're in any doubt about the suitability of a stocks & shares ISA, you should seek independent financial advice. The tax treatment of this product depends on your individual circumstances and may change in future. If you are uncertain about the tax treatment of the product you should contact HMRC or seek independent tax advice.

What is the Stocks and Shares ISA allowance?

The 2021-22 tax year allowance is £20,000. This is the total amount you can invest in ISAs during this tax year without paying any tax on the gains.

How does the ISA allowance work?

The allowance can be split between different accounts, including a Cash ISA, Stocks and Shares ISA, Lifetime ISA (up to £4,000) and Innovative Finance ISA. You can contribute to more than one type of ISA, but not to more than one of the same type in the same tax year.

There is a separate allowance for Junior ISAs for under 18s, which is £9,000 for this tax year. 

The current tax year runs from 6 April 2021 to 5 April 2022.

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What happens if I do not use my ISA allowance? 

You cannot carry over any ISA allowance if you have not contributed your full amount.

If you do not contribute to your ISA at all during the tax year, you may need to reactivate your ISA the next time you want to make contributions. You can do this by logging in to your account and reconfirming your date of birth and National Insurance number. 

When your money is held in an ISA, you don’t pay tax on anything that money earns – be that in the form of interest, dividends or capital gains. ISAs can play an important part in retirement planning alongside pensions.

In addition to the tax advantages, ISAs offer investors flexible access to their savings. It’s important to use as much as you can of your annual £20,000 ISA allowance before the end of the tax year on 5 April, or you will lose it

Historical ISA allowances

Since ISAs were launched, allowances have gradually risen. The following table shows how rates have changed over time.

Tax YearShare ISA / Total AllowanceCash ISAJunior ISALifetime ISA

ISA allowance FAQs

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