Every year, individuals have the opportunity to top up their ISAs and set aside more tax-free savings. While this can be done at any time throughout the year, there’s an annual limit of £20,000 across all ISAs.

By taking advantage of every possible opportunity to invest your money without being penalised by capital gains tax (CGT), you’ll get the very most out of your hard earned cash.

Investing can be a daunting prospect, so we’ve put together a list of questions we tend to get asked when the ISA deadline comes around to help.

When is the ISA deadline for 2023/24?

The deadline for this tax year is midnight on 5th April 2024. After this time, your allowance resets, meaning that any unused allowance from 2023/24 will be lost. For example, if you’ve invested £15,000 over the tax year, then your remaining £5,000 of tax-free allowance will not be carried over to the 2024/25 tax year.

Your £20,000 allowance can be split across different ISAs if you wish, whether it’s a Stocks and Shares ISA, Cash ISA or Lifetime ISA (just be wary of your £4,000 per year limit with this one). If you have both a Stocks and Shares ISA and a Lifetime ISA for example, you could split this with £4,000 into the LISA, and a maximum of £16,000 into Stocks and Shares to take full advantage of the benefits.

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Why do I need to act now?

If you don’t utilise your full £20,000 yearly allowance (and have the money sitting there in a standard savings account), then you’re missing out on valuable tax-free savings. Since ISAs are the most tax efficient way to save (besides pensions, however these are not instantly accessible), you’ll be missing out on the financial benefits they bring.

Ultimately, the more you add to your ISA (within your means), the better.

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Can I invest more than £20,000 in one tax year?

The simple answer to this question is yes, you can. However, those additional savings must be invested elsewhere, as your ISA limit on tax-free savings will remain at £20,000. 

Depending on the amount of spare funds you have, we’d potentially recommend waiting until the new tax year begins on 6th April if you’ve already invested your full allowance for 2023/24. If you have a significant amount left over after making the most of your ISA allowance, please get in touch with our team of financial advisers who can recommend the next best savings option for you.

Will my allowance automatically reset on 6th April?

Yes, your allowance will simply reset from 6th April, meaning that you can then start to invest again up to £20,000 that tax year without incurring any penalties.

That being said, the government can change the ISA limits from time to time – so it’s important to stay up to date with legislation changes via their website. If you’re a Matthew Douglas customer, we’ll be sure to inform you of any significant changes to your investments as they arise.

I want to make use of my remaining ISA allowance. Can you help?

Yes, of course! At Matthew Douglas, our team of experienced advisers are on hand to help you make the most of your money, no matter what time of year.

If you’re paying into your ISA by bank transfer, debit card, Apply Pay or Google Pay, then you can do this right up until 23:59 on 5th April. If you pay by direct debit, this may have to be a bit earlier.

Get in touch with our team today – we’re happy to help in any way we can.