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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

ISA Option
Allows ISA Transfers
Regular Savings
  • Protection Scheme: FSCS
  • Fund Choice: Choose from over 4,000 investment options, including one of the widest fund ranges in the UK, plus shares, investment trusts and exchange-traded funds. There’s also expert guidance to help with your investment decisions, which includes a selection of tools and insights from Fidelity’s experts. Capital at risk. Tax and ISA rules apply.
  • Invest From: £25 through regular savings or £1,000 lump sum

Why we like it: Fidelity has lots of investment options, plus an extensive range of guidance tools to help you decide what to invest in. Their award-winning ISA is easy to start and offers great value, their a typical service fee of just 0.35%. Other ongoing charges apply. On top of that, everything is backed by Fidelity’s 50 years of investment experience.

Important: The value of investments can go down as well as up so you may get back less than you invest. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

Tax treatment depends on individual circumstances and all tax rules may change in the future.

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.

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Types of Stocks and Shares ISA include: 

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Latest News

5 Considerations for Your Next Investment ISA

15th March 2021

You've decided to invest your savings into a Stocks and Shares ISA. You'll be using your tax-free ISA allowance for this year before the deadline, while also investing your money for your future. But what do you need to consider before opening an account? We've put together a list of our top five considerations for you to think about before you click "apply". 

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