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15th
Jul 2020
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What is the Investment ISA Limit?

What is the Investment ISA Limit?

Opening an investment ISA is a fantastic way to maximise the returns you can expect on your investments by keeping them in a tax-free wrapper. But what is the limit on how much you can put into an Investment ISA? We’ve broken down everything you need to know. 

What is an investment ISA - and why should I have one?

An Investment ISA keeps your returns safe from the taxman by keeping the earnings in a tax-free wrapper. These are tax-free by design, and also known as a Stocks and Shares ISA. 

An ISA is a specific way to save which gives you tax-free returns on your savings (or in this case, investments). A Stocks and Shares ISA, or an Investment ISA, is a form of ISA.

In the past few years, interest rates for Cash ISAs and Savings Accounts have been fairly poor.

However, interest rates for Stocks and Shares ISAs (or Investment ISAs) are better, which is why they are often a more attractive option - especially for those looking to get on the investment ladder.

Is there a limit to how much I can put into my Investment ISA? 

Yes!

Government legislation gives every adult UK citizen a yearly allowance which they are able to put into an ISA and enjoy tax-free returns.

Currently, that amount stands at £20,000 per person per year – and all the returns you make on investing some or all of your allowance will be tax free if placed into an ISA.

How many Investment ISAs can I hold? 

You can hold as many Investment ISAs as you would like - however you can only open one new Investment ISA per tax year. 

You are able to transfer your Investment ISA between providers should you find another account which suits your needs better - for more information on this, read our recent step-by-step blog post. 

How should I spread my ISA allowance? 

When using your ISA allowance, you have two options: 

You can use all of your ISA allowance to pay into a Stocks and Shares ISA.

Or you can spread your allowance across the four types of ISA investment available (to all UK adult taxpayers):

  • Cash ISAs
  • Stocks and Shares ISAs
  • Innovative Finance ISAs
  • Lifetime ISAs

Any money that you put into a Junior ISA (JISA) does not count towards your yearly tax-free allowance, but there is a £9000 limit on these accounts for this tax year. 

Read  more about Investment ISA options.

Read more about Cash ISA options. 

Read more about Junior ISA options. 

Investment Fund Supermarket ISAs

Stocks & Shares ISA

from Fidelity

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 2,000+ Funds
  • Invest From: £50pm

Why we like it: Invest from as little as £50 a month or with a £1,000 lump sum. Investment choice from over 100 fund providers, giving you access to 2,000+ funds. One low-cost service fee of 0.35%*. Great service – from investment guidance on website through to UK-based phones team. PathFinder, Select 50, Investment Finder - investing tools for beginners to advanced investors. 24/7 access via online Account Management system.

* depending on how much you have invested

Important: Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.

Share Dealing ISAs

Investment ISA

from Barclays Smart Investor

  • Trade From (standard trader rate): £3 for funds (or £1 for each automated regular investment)

Why we like it: Start using your new 2020/21 ISA allowance. Invest in over 2,000 funds plus Exchange Traded Funds (ETFs), Investment Trusts, shares and more.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. Tax rules can change and individual effects vary. If you’re unsure, we recommend you ask for independent advice.

Important Risk Information:

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment is for you, please seek personal advice.

High Income ISAs

High income ISA ideas:

ISAs Products

Cash ISAs

Fixed Rate & Instant Access ISAs:

Cash ISAs: 

Stocks & Shares ISAs

Types of Stocks and Shares ISA include: 

Stocks and Shares ISAs

Latest News

Investment ISA Pros and Cons

7th August 2020

The tax-free returns offered by an Investment ISA (otherwise known as a Stocks and Shares ISA) can be very tempting at first glance - however, as with any investment, it is important to weigh up the pros and cons. So we've put together a list of what you need to consider before opening your own Stocks and Shares ISA account. 

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