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I need help with my ISA allowance and drip feeding into it

30 June 2021

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Question by Mike

I have a stocks and shares ISA and have been paying in £100 per month and an initial lump sum. Current balance £2,000. Can I add the remaining £18,000 in cash to secure the max to £20k before the end of the tax year and continue to drip feed it monthly from the £18k; because effectively I have invested the max amount in the 20/21 tax year but also take out and fund another stocks and shares ISA in the 21/22 tax year with totally new money?

Answered by Clem Chatelin

Yes, you can add the remaining £18,000 less any additional monthly contributions yet to be added to your ISA in this tax year from cash to make full use of your ISA allowance. You can continue your monthly contributions into that same ISA as from 6 April your ISA allowance is reset for the new tax year. If you have additional funds you can always add them until the £20,000 limit has been reached as and when you like to make full use of your ISA allowance. Just to be clear an ISA account can be subscribed for several years, you don't need to open a new ISA account for each year you contribute.

Answered by

Clem Chatelin

Senior Financial Planner

Clémence has lived in four different countries and learned 5 different languages along the way and she can confidently speak, read and write three. Having obtained a Bachelor’s in International Management (China) at SOAS, she discovered her passion for finance and sustainable business. After completing a Master’s in Finance & Investment at the University of Bristol she joined the team in 2017 on the Graduate Programme.