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25th
Jan 2021
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Can I Put £20000 In A ISA Every Year?

Can I Put £20000 In A ISA Every Year?

If you are looking for tax efficient ideas for investing then an ISA is a perfect place to start. Currently UK residents can put up to £20,000 in a ISA every year.

The simple answer is ‘yes’, £20,000 is what each person is permitted to contribute to Individual Savings Accounts each year. 

This assumes that you are aged 16 or over and are resident in the UK for tax purposes.

If you are aged 16 or 17 you will only be permitted to contribute to cash ISAs, and from age 18 you can take out any type of ISA.

It’s important to note that the ‘ISA year’ means the ‘tax year’, which isn’t the same as the calendar year. The tax year starts on 6th April, so you can contribute £20,000 between 6th April 2020 and 5th April 2021 as your contribution for the current tax year. You will be able to contribute an additional £20,000 from 6th April 2021 onwards.

Another important thing to consider is that if you choose to put £20,000 into one ISA, then it means you can’t contribute to any other ISAs during the same tax year. The £20,000 is what you are permitted to contribute in total to these types of ISA:

  • Stocks & Shares
  • Cash
  • Innovative Finance
  • Lifetime
  • Help To Buy

The annual limit on contributions to a lifetime ISA is £4,000 and for a Help To Buy ISA it is £2,400. You need to be aged between 18 and 39 to open a lifetime ISA, and you can only make contributions until age 50. 

New Help To Buy ISAs are no longer available, however existing planholders can still make contributions of up to £200 per month.

These are essentially the only other restrictions on what can be contributed to ISAs. Stocks & shares, cash and innovative finance ISAs are available to all UK adults aged 18 or over and allow contributions of up to £20,000 per year.

Some examples of how you might use your £20,000 annual ISA allowance include:

You could invest £20,000 in cash, but then you cannot make any contributions to any of the other forms of ISA during the same tax year

Likewise, you could invest £20,000 in stocks & shares or innovative finance, and you cannot make any contributions to any of the other forms of ISA during the same tax year

You could contribute £10,000 to a cash ISA and £10,000 to a stocks & shares ISA

You could contribute £10,000 to a stocks & shares ISA and £5,000 each to a cash ISA and an innovative finance ISA

If eligible, you could make full use of the £4,000 lifetime ISA allowance and then contribute £16,000 to stocks & shares, cash and/or innovative finance ISAs

The annual limit on contributions to a help to buy ISA is £2,400, so if you have an existing account, you could make full use of this allowance and then contribute £17,600 to stocks & shares, lifetime and/or innovative finance ISAs. 

You can’t contribute to a help to buy ISA and a cash ISA in the same tax year, as a help to buy ISA is essentially a cash account.

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.

Stocks & Shares ISA

from Hargreaves Lansdown

ISA Option
Allows ISA Transfers
Regular Savings
  • Protection Scheme: FSCS
  • Fund Choice: 2,500+ Funds. UK and overseas shares. Corporate and government bonds. Exchange Traded Funds (ETFs). Investment trusts and much more. Capital at risk.Tax & ISA rules apply
  • Invest From: £25 pm

Why we like it: Choose your own funds or alternatively a ready made portfolio. Market-beating savings and discounts of up to 5.5%. No charge to buy and sell funds. Low, tiered annual charges for holding funds, with a maximum of just 0.45% per annum. Free fund updates and analysis from experienced research team. Invest with a financially secure, FTSE 100 company.

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

Stocks & Shares ISA

from AJ Bell

Allows ISA Transfers
  • Protection Scheme: FSCS
  • Fund Choice: 2000+ Funds
  • Invest From: £25 pm

Why we like it: It is simple to invest in a fund online. You will need to open an account first and then choose the fund you are interested in investing in. There are over 2,000 funds to choose from but to make it easier for you AJ Bell have created their favourite funds list which is their pick of the best funds. 

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

Model Portfolio ISA

from Interactive Investor

ISA Option
Allows ISA Transfers
Regular Savings
  • Protection Scheme: FSCS
  • Fund Choice: Need help choosing the right investments? ii's experts have carefully selected investments to point you in the right direction.
  • Invest From: £25 a month or any lump sum

Why we like it: Designed to make it easier for investors, these four portfolios offer either growth or income options, with a choice of actively managed investments or low-cost tracker funds including an ethical growth portfolio. Low cost fees and trading.

Important: The value of your investments can rise as well as fall. You may get back less than you invested. 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

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