The current annual ISA allowance – for the 2022/23 tax year – is £20,000. There are a number of different ISAs, and each have their own rules regarding subscription limits that you should be aware of before deciding where to allocate your ISA allowance.
For an in-depth insight into making the most of your ISA allowance, download our free guide here.
Each tax year, investors are presented with an annual ISA allowance that they're able to subscribe to an ISA(s) in order to reap the tax-efficient benefits offered by the accounts.
There are four main types of ISA;
- Cash ISA
- Stocks and Shares ISA
- Innovative Finance ISA (IFISA)
- Lifetime ISA
Each type of ISA has its own benefits, risk profile and subscription limit.
Here's an overview of their key features;
ANNUAL SUBSCRIPTION LIMIT (2022/23)
Stocks and Shares ISA
Cash Lifetime ISA
Stocks and Shares Lifetime ISA
You're able to split your annual ISA allowance between more than one type of ISA each financial year.
For example, in the 2022/23 tax year - with your ISA allowance of £20,000 - you could choose to subscribe £5,000 to an IFISA, £5,000 to a Stocks and Shares ISA, and £10,000 to a Cash ISA all within the same tax year.
However, you can't subscribe funds to more than one of the same type of ISA per tax year.
Here's an overview of the historic overall annual ISA allowances each year from their creation in 1999;
Source - HMRC.
(a) Applicable to those aged under 50.
(b) Applicable to those aged 50 and over from 6th October 2009.
(c) Limits until 30th June 2014.
(d) The cash and overall subscription limits were raised to £15,000 from 1st July 2014.
OVERALL ANNUAL ISA ALLOWANCE
£7,200(a) / £10,200(b)
£11,880(c) / £15,000(d)
CARLTON Bonds are an IFISA provider specialising in fixed term property bonds.
Against a backdrop of low interest rates and a volatile stock market, the IFISA can provide an attractive investment opportunity for experienced investors.
With the ability to hold peer-to-peer loans and debt-based securities, IFISA investments have the potential to generate higher rates of return than more traditional investment routes for investors with a greater appetite for risk.
To find out more about making the most of your annual ISA allowance, download our free guide.