£20k per year?

rigby44

Hi,

I keep reading you can save £20k in an ISA per year.

Does that mean for 24/25 I can put in another £20k into a cash ISA, in addition to the £20k I already have in there which was paid in during 23/24? 

Or is £20k the most you are allowed to keep in the ISA account? If so why do they use the ‘per year’ wording?

Brie

£20k in 23/24
another £20k in 24/25  etc

It's been £20k a year for some time so perhaps some government will up this limit at some point.

slinger2

And it doesn't have to go into the same account. You can open a new one if you want.

rigby44

slinger2 said:

And it doesn't have to go into the same account. You can open a new one if you want.

Thanks.

So if I keep the same account the balance will look as follows:

23/24 - £20k
24/25 (now) - £40k
25/26 - £60k

And it’s all tax free?

If I’m able to keep putting it £20k per year? I have a 5% savings account with Chip! at the moment but I’ll have to pay tax on that at some point, so makes sense to keep as much in an ISA as I can?

Martico

That's correct

Dazed_and_C0nfused

rigby44 said:

slinger2 said:

And it doesn't have to go into the same account. You can open a new one if you want.

Thanks.

So if I keep the same account the balance will look as follows:

23/24 - £20k
24/25 (now) - £40k
25/26 - £60k

And it’s all tax free?

If I’m able to keep putting it £20k per year? I have a 5% savings account with Chip! at the moment but I’ll have to pay tax on that at some point, so makes sense to keep as much in an ISA as I can?

Assuming the ISA rate is high enough to be better than paying the tax.

If not you are avoiding paying tax but have a worse overall outcome.  Which seems to suit some people but isn't better financially.

rigby44

Dazed_and_C0nfused said:

rigby44 said:

slinger2 said:

And it doesn't have to go into the same account. You can open a new one if you want.

Thanks.

So if I keep the same account the balance will look as follows:

23/24 - £20k
24/25 (now) - £40k
25/26 - £60k

And it’s all tax free?

If I’m able to keep putting it £20k per year? I have a 5% savings account with Chip! at the moment but I’ll have to pay tax on that at some point, so makes sense to keep as much in an ISA as I can?

Assuming the ISA rate is high enough to be better than paying the tax.

If not you are avoiding paying tax but have a worse overall outcome.  Which seems to suit some people but isn't better financially.

Both are 4.9% or thereabouts so loading up the ISA to the maximum will be more efficient

born_again

Brie said:

£20k in 23/24
another £20k in 24/25  etc

It's been £20k a year for some time so perhaps some government will up this limit at some point.

I thought that they were looking at a cap on the limit (£100K) you could save in a ISA, & be tax free.

Ayr_Rage

If you are looking to contribute the full amount for several years and do not need income consider a Stocks and Shares ISA.

You may get a good return on the share price and if you pick an investment that pays a decent dividend, reinvest that and the overall return gets even better.

ColdIron

born_again said:

Brie said:

£20k in 23/24
another £20k in 24/25  etc

It's been £20k a year for some time so perhaps some government will up this limit at some point.

I thought that they were looking at a cap on the limit (£100K) you could save in a ISA, & be tax free.

That's unsubstantiated speculation on what might happen with an incoming Labour government. Of course they could do it but for a whole host of reasons most believe it is extraordinarily unlikely

Albermarle

rigby44 said:

Hi,

I keep reading you can save £20k in an ISA per year.

Does that mean for 24/25 I can put in another £20k into a cash ISA, in addition to the £20k I already have in there which was paid in during 23/24? 

Or is £20k the most you are allowed to keep in the ISA account? If so why do they use the ‘per year’ wording?

You would probably benefit from reading through the forum. You should pick up some good tips about the Isa rules.