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ISA allowance guide

Simply put, your ISA allowance for the current tax year is £20,000.

But what exactly does that mean? We dig into a bit more detail and answer some common questions.

ISA allowance basics

The Government sets the ISA limits and rules, so these could change in the future, but here's a quick overview of the current ISA allowance basics.

The current ISA limit is £20,000. This is the total you can save and invest in all types of ISA throughout the tax year (which starts on the 6th of April each year).

To be eligible for this tax-free allowance, you have to be over the age of 18 years (16 for a Cash ISA, not offered by Scottish Friendly) and a resident of the United Kingdom.

You can't carry any of your allowance forward into the next tax year so, if you haven't used your full allowance by the 5th of April, you simply lose it.

Splitting your allowance

Did you know that you can have more than one type of ISA in each tax year? Great news for helping you to manage your money in a way that suits you best.

Cash ISAs, Investment ISAs and Innovative Finance ISAs are available to everyone over 18 and you can split your annual allowance any way you like between them.

If you're also eligible for a Lifetime ISA, you could put up to £4,000 of your allowance into that and split the rest how you like.

Below is a quick tool which shows an example of one way you could split your ISA allowance between two of the more popular ISA categories*. For other examples, visit our guide to ISAs.

You can learn more about the different types of ISA in our guide to ISAs.









At Scottish Friendly, we specialise in Investment ISAs which put your money to work using the long-term growth potential of the stock market.

Do transfers count towards my allowance?

Good news: no, they don't.

You're free to transfer a previous year's ISA funds (with the exception of anything in a Lifetime ISA) into a new Cash or Investment ISA and this won't count towards the current year's allowance.

ISA Transfer allowance.png

So, if you have existing ISA funds you'd like to transfer, let your new provider know. Don't withdraw the money from your old account and pay it into the new one, otherwise this will count towards your current year's ISA allowance.

That said, you should check with your providers for any restrictions you may have on transferring ISAs and any charges you may incur.

What about Junior ISAs?

Like adult ISAs the Government sets the Junior ISA limits and rules, and tax treatment depends on individual circumstances. This could change in future.

Our Investment ISAs

Invest in the stock market tax-free with our range of Investment ISAs.

If you're confused about ISAs and the different types and would like to know more, our guide could help.

If you're saving for your child, a Junior ISA could help you build a long-term investment, find out more in our handy guide.

If you can't decide between an investment ISA and a Cash ISA we've weighed up some important factors to consider for both.

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