How much can you invest in an ISA each year?
You are allowed to put £20,000 per tax year into ISAs in your name under current rules. This allowance is set by the government and may change in the future.
If you still have some of your allowance left for the current tax year, you have the option to open a new account. You will need to have enough of your allowance left to contribute the minimum starting contribution, which at J.P. Morgan Personal Investing is £500 for a Stocks and Shares ISA, and £100 for a LISA and JISA.
With a new tax year starting on 6 April, you will have a fresh £20,000 ISA allowance. The start of a new tax year can be a good time to review your finances, and you have the option to open new accounts if you want to, perhaps with a provider that offers different benefits. For example, they may offer a higher interest rate for Cash ISAs, or a wider selection of investments for Stocks and Shares ISAs.
Plan ahead: Cash ISA limits reduce from April 2027
From 6 April 2027, the maximum amount that you can contribute into a Cash ISA reduces from £20,000 to £12,000 for those under 65.
We believe that investing and cash should work in harmony. Cash ISAs can be useful vehicles for keeping emergency cash reserves and ensuring that you have a sufficient buffer to pay for unexpected expenses.
It’s worth noting, however, that the interest that you will earn on the money in a Cash ISA is typically lower than the returns you would generate in a Stocks and Shares ISA. The increased potential returns that come with investing in a Stocks and Shares ISA also come with the risk of ending up with less than you invested. Please note that J.P. Morgan Personal Investing does not offer Cash ISAs.
Note that JISAs have a separate allowance of £9,000 per tax year (per child) that does not count towards the £20,000 annual allowance for other ISA types. These are different to other types of ISA as you can only open one cash JISA and one Stocks and Shares JISA per child throughout their childhood. You can, however, transfer a JISA from one provider to another.
Keep track of your contributions
While people have more flexibility when it comes to their ISA strategy, it also means account holders will need to keep close track of how much they're contributing to their different ISAs.
If you choose to contribute to multiple ISAs in a tax year, make sure you don't exceed the £20,000 annual allowance per tax year. Please note that for a LISA, the contribution limit per tax year is £4,000, which is part of your overall £20,000 ISA contribution allowance (per tax year). For example, if your first decision in the tax year was to max-out your LISA allowance by contributing £4,000 (not including the £1,000 government bonus), you would then have £16,000 remaining to contribute to any other cash or Stocks and Shares ISAs you hold.
Risk warning
As with all investing, your capital is at risk. The value of your portfolio with J.P. Morgan Personal Investing can go down as well as up and you may get back less than you invest. Tax rules vary by individual status and may change. This is general information, not personalised tax advice. ISA/JISA/LISA eligibility rules apply.