ISA Allowance 2016/2017
Information on using your annual ISA allowance, before the deadline!
A guide to making the most of your ISA allowance each tax year
Your annual ISA allowance for the current 2016/2017 tax year is £15,240. Each tax year runs from the 6th April in one year to 5th April in the next, and this years's ISA deadline is fast approaching.
The Government sets the ISA limits, usually increasing them slightly each year, although this isn’t guaranteed. This tax efficient allowance is available to anyone over the age of 18 years, who is a resident of the United Kingdom. Within the current ISA rules, your allowance can be invested in either a Cash ISA, an Innovative Finance ISA (neither are offered by Scottish Friendly) or an Investment ISA, also known as a Stocks and Shares ISA, or a combination of all three.
To get the most out of your new ISA allowance each year, it could make sense to start early. By saving or investing in your Cash ISA, Innovative Finance ISA or Investment ISA at the start of the new tax year you give your money longer exposure to the growth potential of each.
You should be aware that although savings in a Cash ISA (not offered by Scottish Friendly) are secure they can be eroded over time by the effects of inflation. The value of investments, in an Investment ISA, can fall as well as rise and you could get back less than you have paid in. Money invested in an Innovative Finance ISA is not secure.
Take a look at our interactive tool below, to see how you can split your allowance between your Cash ISA, with another ISA provider, and your Investment ISA. You can also watch our handy video or check out our Frequently Asked Questions below.
At the end of each tax year (5th April) any remaining allowance you have not used will expire. If you don't use your full ISA allowance in any one year, you simply lose it!
Any remaining allowance doesn't carry over into your new ISA limit for the new tax year, so to make the most of this tax efficient benefit and use each year’s allowance before it's too late.
You can allocate your annual ISA allowance between both a Cash ISA and an Investment ISA in any way you like, as long as you stay within your ISA allowance. Below are some examples of how you could split your allowance.
Tax treatment depends on individual circumstances and tax law may change in the future.
Your total ISA allowance is £15,240 for the current tax year, which runs from 6th April 2016 to 5th April 2017. You can invest your total allowance in a Cash ISA, an Innovative Finance ISA or an Investment ISA or a combination of all three, providing you don’t exceed your £15,240 limit across them all.
You can save up to a maximum of £15,240 in a Cash ISA in the current 2016/2017 tax year, providing you have not invested in an Investment ISA or an Innovative Finance ISA as well. Scottish Friendly does not offer Cash ISAs or Innovative Finance ISAs, only Investment ISAs also known as Stocks and Shares ISAs.
You can invest up to the maximum £15,240 within an Investment ISA, also known as a Stocks and Shares ISA, in the current 2016/2017 tax year. This is assuming you do not have any savings on investments in a Cash ISA or an Innovative Finance ISA with another ISA manager.
You are entitled to have one Cash ISA, one Innovative Finance ISA and one Investment ISA, also known as a Stocks and Shares ISA, each tax year. These can all be with the one provider, if they offer all types, or with separate ISA managers. You must make sure to remain within your annual allowance across all different ISA types.
The total annual allowance for Junior ISAs is £4,080 in the 2016/2017 tax year. This can also be split between a Cash Junior ISA and a Stocks and Shares Junior ISA for each child. You could also choose to use some of your own ISA allowance to save or invest for a child, as well as their own Junior ISA.
From 6th April 2016 ISA managers can offer a flexible ISA, which enables you to reinvest any withdrawals you have made from your ISA in any tax year without it counting towards your total contributions in that tax year. Scottish Friendly does not offer a flexible ISA, therefore If you wish to reinvest any withdrawal amount, it will count as a new subscription in the current tax year.
You can transfer money from one ISA to another by contacting the ISA provider you wish to move money to, some providers may charge for this service. Providing you transfer the money rather than withdrawing it from one and investing it in the other, this does not affect your ISA limits for the current tax year. Scottish Friendly does not charge for making a transfer in or out of our Investment ISAs.
The current Government rules mean that you can put a total of £4,080 into a Junior ISA during the 2016/2017 tax year.More about their Junior ISA allowance
Scottish Friendly do not offer advice, therefore no advice has been provided on this page. If you are in any doubt as to whether a plan is suitable for you, you should contact a financial adviser for advice. If you do not have a financial adviser, you can get details of local financial advisers by visiting www.unbiased.co.uk. Advisers may charge for providing such advice and should confirm any cost beforehand.
Scottish Friendly is not responsible for the accuracy of the information displayed on externally linked third party websites. The Scottish Friendly Group of Companies consists of the following companies: Scottish Friendly Assurance Society Limited – Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Member of AFM, Member of ABI: Life, Savings and Investments. Scottish Friendly Asset Managers Limited – Authorised and regulated by the Financial Conduct Authority. Member of The Investment Association. Registered in Scotland No 187215: OEIC Managers, ISA Managers. Scottish Friendly Insurance Services Limited – Authorised and regulated by the Financial Conduct Authority. Registered in Scotland No 113007. SFIS (Nominees) Limited - Registered in Scotland No 397351. Head office: Scottish Friendly House, 16 Blythswood Square, Glasgow G2 4HJ.