Question about "Use it or lose it"

Sackagold

I've read on here in big, bold letters: "Use it or lose it." This is about ISAs of course but I don't quite understand it. From what I've learnt in the past 24 hours since being here is that in this tax year of 10/11 I can deposit a maximum of £5100 into an ISA (and another £5100 into an S&S ISA). And each year I can top it up according to what the maximum amount is.

But, am I only 'using' it as long as I deposit in the maximum? Could I for instance deposit £2000, leaving me with a gap of £3100, and then still have that £3100 as a rollover on next year's limit? e.g. the max. for 11/12 is £5100 again, having not consumed 10/11's capacity, £3100 rolls over into 11/12 allowing me to deposit £8200?

Thanks.

Aegis

You can't rollover the ISA allowance, so if you fail to utilise the maximum amount each year, you can't simply deposit more than the maximum in the following year.

Sackagold

Ok. So "use it" simply means use it all. Thanks.

LongTermLurker

or what (part of your allowance) you don't use, you lose (the right to deposit)