In this brief blog, we are going to discuss the  ISA allowance and answer some of the most common questions about the ISA allowance.

What is an ISA allowance?

An ISA allowance is a yearly allowance which the government allows you to save within an individual savings account(ISA) and receive tax-free returns. Every year the government reviews the ISA allowance and decides on whether to leave the ISA allowance the same or increase the ISA allowance for the next year. 

The ISA allowance is essentially the maximum you can contribute to an ISA every year. This doesn’t have to be in one ISA product. You can split your ISA amongst several types of ISA products in the same tax year but you cannot contribute to more than one type of ISA product in the same tax year.

You can invest your ISA allowance in a cash ISA, a help to buy ISA, a lifetime ISA, a stocks and shares ISA and an innovative ISA.

The current ISA allowance for the current tax year of 2018/2019 is £20,000.

Junior ISAs have a much reduced ISA allowance at £4,368.

The ISA allowance resets at the end of every tax year. This means if you don’t use your ISA allowance in one tax year, you won’t be able to roll it over to the next tax year but the new ISA allowance will reset for the next tax year. Since 2016 you can now take money out of your ISA account and replace it without it affecting your ISA allowance. In the past, you would not have been able to replace funds you took out of your ISA which meant that any new contributions will have reduced your ISA allowance for the tax year further.

Some ISAs such as the lifetime ISA and the help to buy ISA have their own ISA allowance limit.

Junior ISA allowance

As mentioned above the Junior ISAs have a reduced ISA allowance at £4,368.

Once a child turns 16 they can then have an adult cash ISA alongside their junior ISA but the junior ISA limit will remain the same. This means they will be able to save the maximum ISA allowance on their junior ISA as well as their adult cash ISA till they turn 18 and can no longer contribute to a junior ISA.

Below we have provided the historic ISA allowance for the previous tax years.

Tax year ISA allowance Junior ISA allowance

2014/2015 £15,000 £4,000

2015/2016 £15,240 £4,080

2016/2017 £15,240 £4,080

2017/2018 £20,000 £4,128

2018/2019 £20,000 £4,260

2019/2020 £20,000 £4,368

Below we have answered some of the most frequently asked questions about the ISA allowance.

In this brief guide, we have answered some of the most frequently asked questions about the ISA allowance.

If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.

You can also contact the debt charity “Step Change” if you are in debt and need help.


John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.