Use it or lose it time for your ISA

As the end of the financial year draws ever closer, it’s important not to forget about any ISAs (Individual Savings Accounts) you have and any remaining payments that you’re allowed to make. The maximum allowance for ISAs for the 2015/16 financial year is £15,240, so it’s important that you invest any funds that you have left to pay into your ISA as close to that amount as possible, as soon as you can.

The amount will reset again on 6th April 2016 whether you have paid in the maximum amount or not – it cannot be carried over to the next year – so make sure you take advantage of your full allowance whilst you can.

If you’re still not completely up to speed on ISAs, there are essentially two different types available: cash ISAs and stocks and shares ISAs. You are entitled to open one of each ISA in any financial year. If you have just one ISA, then £15,240 is the maximum amount you can pay into that account over the financial year.

Until a couple of years ago when the ISA system was overhauled, if you opened two ISAs in one year, that maximum investment amount had to be split in a prescribed way between your two accounts. However, since the system was overhauled in 2014, if you open both types of ISA in one year then the amount can be split between the two accounts however you wish. For example, if you were to invest £10,000 into your cash ISA in one financial year, you could then invest a maximum of £5,240 into your stocks and shares ISA that year. You can even choose to invest the full amount into a stocks and shares ISA should you wish, which you couldn’t do under the old system.

The main draw of investing your money into an ISA is, of course, that any money you pay in is exempt from taxation on withdrawal, allowing you to potentially build up interest on invested funds much more readily than in other forms of savings or investments. It’s typically considered a good idea, therefore, to take full advantage of any ISAs you have before 5th April this year, if you are in a position to do so, or you will be missing out on the tax-free savings you’re entitled to.

More stories

17 Mar 2016 Uncategorized

Retirement ‘class of 2016’ owe less than last year’s

17 Mar 2016 Uncategorized

Double Chartered Celebrations!

How can we help?

We’re very happy to answer your questions. Complete the form below and one of our team will respond with an answer.

    You voluntarily choose to provide personal details to us via this website. Personal information will be treated as confidential and held in accordance with the Data Protection Act 1998. You agree that such personal information may be used to provide you with details of services and products in writing, by email or by telephone. Please read our Privacy Statement before completing any enquiry form or before sending an email to us.

    Important information

    AKFP Group is the trading name of AKFP Ltd which is authorised and regulated by the Financial Conduct Authority ( Financial Services Register No: 176477.

    The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at

    AKFP Ltd, Registered Address: Building 2, The Sidings, Antrim Road, Lisburn, BT28 3AJ. Registered in Northern Ireland, No. NI29631.

    The information contained within this site is subject to the UK regulatory regime and is therefore targeted primarily at consumers based in the UK.