ISA Allowance 2024/25 Explained

Home ISA Guides How the ISA allowance works

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At a glance

The annual ISA allowance is the maximum amount you can deposit across all ISAs each tax-year
ISA allowance 2024/2025 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.

The allowance hasn’t been changed since 2017 and, in the Autumn Budget 2024, it was confirmed it would be maintained at its current level until April 2030.

When does the new ISA year start?

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

The 2024/25 tax-year began on 6 April 2024 and runs until 5 April 2025; similarly, the 2025/26 tax-year starts and ends on the same dates a year later.

Who qualifies for an ISA allowance?

Only UK residents, members of the armed forces and Crown Servants (as well as their spouse or civil partners) aged 18 or over can open an adult ISA and therefore qualify for the ISA allowance.

While Junior ISAs (JISAs) are available to those under the age of 18, these come with their own annual allowance.

What is the Junior ISA allowance?

The maximum amount that can be deposited into JISAs each tax-year stands at £9,000 per child. This is separate to the adult ISA limit and enables you to add to a child or grandchild’s account without depleting your own allowance.

Again, the Autumn Budget 2024 confirmed this threshold will remain in place until April 2030.

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). However, this changed when new rules came into effect from April 2024 allowing multiple subscriptions to the same type of ISA.

In theory, 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.

Importantly, these rules don’t apply to JISAs; children can only hold a subscription to one Junior cash ISA and one Junior stocks and shares ISA per tax-year. You should also bear in mind some providers may not allow you to hold multiple accounts with them, so be sure to check before applying.

Related guide: How many ISAs can I have?

What is the Lifetime ISA allowance?

Lifetime ISAs (LISAs) are another exemption to last year's 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.

Want to make use of your ISA allowance?

Our cash ISA charts are regularly updated throughout the day to bring you the best notice, easy access and fixed ISA rates on the market; you can also read our weekly ISA roundup for more information on accounts offering the most competitive rates.

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

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ISA Allowance FAQs

Is there a joint ISA allowance for married couples?

There isn’t a joint ISA allowance for married couples as ISAs can only be held in one person’s name. Instead, you and your spouse or civil partner will both each receive the standard £20,000 yearly ISA allowance.

While you may choose to spread your money strategically across different ISAs, remember any returns technically belong to the accountholder.

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 interest on any money held in the account free from income tax.

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.

Can you carry over any unused ISA allowance into the next tax-year?

No - if you don’t use your entire ISA allowance by the time the current tax-year ends, you can’t carry the outstanding amount into the new tax-year.

Instead, it will automatically reset, and you’ll receive a new ISA allowance of £20,000. This is why you’ll often hear the phrase ‘use it or lose it’ as the deadline nears.

Do you need to open a new ISA every year?

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.

If you have a fixed ISA that matures, however, you’ll have to decide whether to withdraw the funds and close the account, renew with your current provider, or transfer your ISA to a new account.

What happens to your ISA allowance when you die?

If you were to pass away, your spouse or civil partner (with whom you live) is the only person who can inherit 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 extra allowance known as an Additional Permitted Subscription (APS).

Although you can leave the value of your ISA will to another family member or friend in your will, this will form part of your estate and be liable for Inheritance Tax (IHT). Meanwhile, you spouse or civil partner is still entitled to a temporarily heightened allowance which they can use to deposit their own money in ISAs.

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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