ISA Allowance 2024/25 Explained

Home ISA Guides How the ISA allowance works

Jar labelled allowances, next to an alarm clock

At a glance

The annual ISA allowance is the maximum amount you can deposit across all ISAs each tax-year
As of the 2024/25 tax-year, the ISA allowance stands at £20,000
ISA reforms unveiled in the Autumn Budget 2023 mean it’s now possible to hold multiple subscriptions to ISAs of the same type within a single tax-year.

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What is the annual ISA allowance?

The annual ISA allowance is the maximum amount of money you can put away in ISAs each tax-year. As of the 2024/25 tax-year, this threshold stands at £20,000, having gone unchanged since 2017.

When does the new ISA year start?

Your ISA allowance resets at the start of each tax-year.

The 2024/25 tax-year begins on 6 April 2024 and runs until 5 April 2025.

Who qualifies for an ISA allowance?

From April 2024, the Government is looking to 'harmonise ISAs' so only UK residents and Crown servants aged 18 or over will be able to open an adult ISA and qualify for the £20,000 allowance.

However, there may be a transition period during which those aged 16 and 17 are still be able to apply for an adult account (but not all providers may allow this).

Junior ISAs will remain available, and can be opened by or on behalf of those under the age of 18.

What is the Junior ISA allowance?

Junior ISAs (JISAs) come with their own annual allowance which currently stands at £9,000 for the 2024/25 tax-year. This lets you make contributions to a child or grandchild’s account without it depleting your own ISA allowance.

Children can hold a subscription to one Junior cash ISA and one Junior stocks and shares ISA per tax-year.

How many ISAs can you have?

There’s no limit on the number of ISAs you can have.

Previously, you could only open and fund one of each of the four main types of ISA per tax-year (i.e. one cash ISA, stocks and shares ISA, Lifetime ISA and Innovative Finance ISA IFISA).

This changed when the Chancellor of the Exchequer, Jeremy Hunt, unveiled ISA reforms in the Government’s Autumn Statement 2023. As part of these reforms, Hunt announced multiple subscriptions to ISAs of the same type would be permitted from April 2024.

For instance, this means you could open and pay into both an easy access and fixed rate cash ISA within a tax-year, so long as you don’t breach your overall £20,000 allowance. Alternatively, you could use multiple stocks and shares ISAs to invest in different assets.

What is the Lifetime ISA allowance?

Lifetime ISAs (LISAs) are an exemption to recent reforms; while it’s possible to hold multiple LISAs you can still only open and pay into one of this type of account per tax-year.

Furthermore, although they come with their own limit of £4,000, it should be noted any contributions into a LISA count towards your overall ISA allowance.

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Alternatively, savers can use our dedicated charts to compare Junior ISAs, Lifetime ISAs and Stocks and Shares ISA providers.

ISA Allowance FAQs

What happens to your ISA at the end of the tax-year?

Your ISA will remain open at the end of the tax-year, and you’ll continue to earn tax-free interest on any money held in the account.

Once the new tax-year begins, your ISA allowance will reset, and you can continue adding to your existing ISA if your account permits further deposits.

However, the end of the tax-year can be a popular time for providers to launch new, competitive accounts or increase their rates as they seek custom from savers looking to use up the last of their allowance before it resets. You therefore may want to consider opening a new account or transferring your ISA if you find a more attractive deal.

Do you need to open a new ISA every year?

No, you don’t need to open a new cash ISA every tax-year, but good practice is to regularly review top rates to ensure an existing ISA is still paying competitive returns.

What happens to your ISA allowance when you die?

If you were to pass away, your spouse or civil partner can inherit any savings held in your ISA without it counting towards their annual ISA allowance and while still retaining the tax-free benefits.

This is facilitated by a one-off Additional Permitted Subscription (APS).

Where there is no surviving partner, ISAs will form part of your estate and their value can be left to any beneficiary listed in your will. However, under these circumstances no additional subscription is permitted and your savings, as part of your estate, may be subject to inheritance tax.

For more information, view our guide on inheriting ISAs.

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Disclaimer: This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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What is the 2024/25 ISA allowance?