Site Logo
Site Logo

Does the £20K ISA allowance apply only to ISAs in my name or to any ISAs? Can I put 20K in my ISA and 4K in my daughter's Lifetime ISA?

30 July 2021

Got a question?We'll put your question to our panel of helpful advisers

Question by Ian

Does the £20K ISA allowance apply only to ISAs in my name or to any ISAs? Can I put 20K in my ISA and 4K in my daughter's Lifetime ISA?


Answered by Chelsea Dennison

Hi Ian

The ISA allowance is per individual, so you will have an allowance of £20,000 for the current tax year and your daughter will have a separate £20,000 allowance assuming she is at least 16 years old. There is a Junior ISA allowance of £9,000 for those under 16 years old.

Therefore, you can add £20,000 to your ISA to make full use of your annual allowance and you can gift £4,000 to your daughter, for her to add to her own lifetime ISA. It may be worth checking with the ISA provider if the payment can come from your account or if it will need to come from your daughter’s account. Your daughter will then have £16,000 ISA allowance remining for the current tax year, as the 25% government bonus within her lifetime ISA, does not count towards her annual ISA allowance.

I hope that helps.

Thanks

Answered by

Chelsea Dennison

Senior Financial Planner

I studied Mathematics at The University of Manchester and achieved a 2:1 in June 2015. After graduating, I moved to Paris for a year where I was an Au Pair and attend language school to improve my French to a conversational level. When I returned home in August 2016, I worked at L&G retirements before I started my career in Financial Planning on the PN grad scheme in July 2017. I passed my Diploma in just 10 months whilst working full time and in September last year gained all the credits needed for the Advanced Diploma (not quite enough experience for Chartered but watch this space!).