Each tax year you can pay a certain amount into an ISA. A tax year runs from 6 April to 5 April the following year.
You can pay into any of the ISA(s) you hold in each tax year, as long as you don't go over your allowance.
For the 2016/17 tax year, the total ISA allowance is £15,240.
You can choose to split this allowance between a cash ISA, Stocks & Shares ISA and an Innovative Finance ISA.
For Junior ISAs, there is a separate allowance which, for the 2016/17 tax year, is £4,080.
Your ISA allowance is how much you can add to ISAs during the tax year. It's not a limit on your total balance. This means that:
- Over a number of years you can build up your savings to much more than the annual allowance
- The introduction of ISA flexibility on 6 April 2016 means that if you withdraw money from your cash ISA, you can now replace it (subject to the terms and conditions of your account) within the same tax year, without it counting towards your annual ISA allowance. Replacement money has to be paid into your cash ISA in the same tax year as it is withdrawn, otherwise your annual ISA allowance will be impacted.