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 2022/2023 Stocks and Shares ISA allowance?
The 2022-23 ISA allowance is £20,000. This is the total amount you can pay into ISAs during this tax year.
You can split your allowance between different types of ISA. For example, you could pay into a cash ISA and a Stocks and Shares ISA in the same tax year. But the total can’t exceed £20,000.
The current tax year runs from 6 April 2022 to 5 April 2023.
How does the ISA allowance work?
The allowance can be split between different ISA accounts, including a Cash ISA, Stocks and Shares ISA, Lifetime ISA (up to £4,000 per year) and Innovative Finance ISA. You can contribute to more than one type of ISA in a tax year, but not to more than one of the same type.
There is a separate allowance for Junior ISAs for under 18s, which is £9,000 for this tax year.
Why should you take advantage of your ISA allowance each year?
When your money is held in an ISA, you don’t pay UK tax on anything that money earns – be that in the form of interest, dividends or capital gains.
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.
What happens if I do not use my ISA allowance?
You don’t have to use your full allowance, but you can’t carry over unused allowance from previous years.
If you have not contributed to your ISA at all during the previous tax year, you may need to reactivate it before you can contribute again.
You can do this easily within your online account by reconfirming your date of birth and National Insurance number.
Historical ISA allowances
Since ISAs were launched, allowances have gradually increased. This means there has never been a better time to invest in an ISA.
The following table shows how rates have changed over time.
|Tax Year||Share ISA / Total Allowance||Cash ISA||Junior ISA||Lifetime ISA|