ISA and Junior ISA risks

The amount you can invest into an ISA or Junior ISA each year is decided by the government. You can invest in one cash ISA and one stocks and shares ISA each year, how you split your money between the two doesn’t matter, provided you don’t go over the limit in total.

Once you have invested the maximum you can’t make any further contributions in the tax year. This means that if you withdraw money from your ISA or Junior ISA you will not be able to pay it back in if you have reached your annual subscription limit. If you decide to transfer an ISA from one company to another you will need to do this as an ISA transfer rather than take money out and pay it back in again.

It is worth remembering that the annual allowance is only available for each single tax year, so if you don’t use your allowance in any year you will lose it.

Currently your ISA investments are free from capital gains tax and income tax. These benefits may be changed by the government in the future and you should makes sure that you understand any changes that are made.

Transferring your ISA or Junior ISA

You can transfer investments or cash to our ISA and Junior ISA. If you choose to transfer in cash remember you will be out of the market while the transfer takes place which means you will not be affected by market rises or falls during this time.