The ISA allowance for 2023/24 is £20,000.
How can you use your ISA allowance in 2023/24?
Your ISA allowance for 2023/24 is limited to £20,000. This means you can invest any amount but must not surpass the limitation. If you don’t use your maximum allowance, you won’t be able to transfer the remainder to the following tax year. The term given to this is also known as ‘use it or lose it’.
You can split your allowance over all four ISAs or pay directly into an ISA of your choice. However, if you overpay your allowance limit, you may incur a penalty. If you happen to overpay, you will need to contact your provider and the HMRC at 0300 200 3300 to see if you can receive the excess back. If you cannot, you may have to pay tax on any interest gained from the excess amount.
Learn more about ISA:
ISA allowance history
Since the 2017/18 financial tax year, the maximum annual ISA allowance has remained the same at £20,000. The 2023/24 ISA allowance has remained the same at £20,000. Increasing the allowance could allow investors and savers to reap the equivalent benefits they previously enjoyed.
History of ISA Allowance over years:
|Tax Year||Total Max ISA Allowance||Max Allowance for Cash ISA||Max Allowance for Stocks & Shares ISA||Max Allowance for Lifetime ISA||Max Allowance for Innovative Finance ISA|