ISA changes 2016
2016/17 ISA allowance
The Government has announced that the ISA limit for both adult and junior ISAs will remain unchanged for the tax year 2016/17 at £15,240 and £4,080 respectively.
From 6 April 2016, you can also split your ISA allowance between a stocks and shares ISA, a cash ISA and the new innovative finance ISA if you wish to. The innovative finance ISA is being introduced for peer to peer (P2P) savers. But as currently, you cannot exceed the annual allowance across all ISAs. (Please note we do not offer cash or innovative finance ISAs).
Tips for using your ISA allowance
The ISA allowance is set by the Government and determines how much you can invest in ISAs each tax year. The ISA allowance can be used in either a cash or stocks and shares ISA but you cannot exceed the allowance across both. You also don’t have to use all of your allowance if you don’t want to but once the tax year is over your allowance is gone. You cannot ‘roll over’ any unused allowance.
- If you have not used all your 2015/16 allowance invest before the end of the tax year - 5 April 2016 so that you don’t lose your allowance
- Invest early in each tax year to get the maximum benefit
- Don’t forget Junior ISAs which can be a great way to save for university fees or house deposits
- Remember that both married partners get their own ISA allowance