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How many ISAs can I have?

21 February 2022

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Question by Aditya

How many ISAs can I have?


Answered by Adam Holt

Hello Aditya,

Every tax year you have an ISA allowance in the UK that lets you save or invest money up to a certain amount without paying tax on your returns. Your ISA allowance for the 2021/22 tax year is £20,000. The tax year runs from the 6th April to the 5th April the following year.

For adults there are four types of ISAs:

Cash ISAs:
These are similar to a regular savings account, but you don’t pay tax on any interest earned

Stocks & Shares ISAs:
These allow you to invest your money in funds and other types of investments. One of the main benefits of a Stocks & Shares ISA is that you don’t pay tax on any investment growth.

Lifetime ISAs: These are specifically for those saving for a first home or life after retirement. The government pays in an extra £1 for every £4 you save. You can save up to £4,000 a year into a Lifetime ISA (£5,000 if you include the government contributions). To invest in a Lifetime ISA, you must be under 40, and can make contributions up to your 50th birthday


Innovative Finance ISA: This is an ISA that contains peer-to-peer loans instead of cash or stocks and shares

How many can you have?

You can only open one of each ISA type in the same tax year. For example, you can’t open two Stocks & Shares ISAs in a tax year, but you could open one Stocks & Shares ISA and one Cash ISA. Theoretically you could split the full £20,000 over all four ISA products e.g.

£10,000 - In a cash ISA

£5,000 - In a stocks and shares ISA

£2,500 - In an innovative finance IISA

£2,500 - In a lifetime ISA

If you do open more than one ISA, keep in mind that you can’t put in more than £20,000 across all of them in one tax year.

Hope that helps,
Adam

Answered by

Adam Holt

Independent Financial Adviser

I’m an Independent Financial Adviser who splits time between my office in London and working from home in Kent.