What is the annual ISA allowance?

The current annual ISA allowance – for the 2024/25 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;

ISA TYPE
ANNUAL SUBSCRIPTION LIMIT (2024/25)
RISK PROFILE
ESTIMATED RETURNS
Cash ISA
£20,000
Low
<3%
Stocks and Shares ISA
£20,000
Medium–high
4%+ (targeted)
IFISA
£20,000
Medium–high
4-10% (targeted)
Cash Lifetime ISA
£4,000
Low
<3%
Stocks and Shares Lifetime ISA
£4,000
Medium–high
4%+ (targeted)

You're able to split your annual ISA allowance between more than one type of ISA each financial year.

For example, in the 2024/25 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.

Here's an overview of the historic overall annual ISA allowances each year from their creation in 1999;

TAX YEAR
OVERALL ANNUAL ISA ALLOWANCE
1999/00
£7,000
2000/01
£7,000
2001/02
£7,000
2002/03
£7,000
2003/04
£7,000
2004/05
£7,000
2005/06
£7,000
2006/07
£7,000
2007/08
£7,000
2008/09
£7,200
2009/10
£7,200(a) / £10,200(b)
2010/11
£10,200
2011/12
£10,680
2012/13
£11,280
2013/14
£11,520
2014/15
£11,880(c) / £15,000(d)
2015/16
£15,240
2016/17
£15,240
2017/18
£20,000
2018/19
£20,000
2019/20
£20,000
2020/21
£20,000
2021/22
£20,000
2022/23
£20,000
2023/24
£20,000
2024/25
£20,000
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.
 

 


 

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.

ISA Guide