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Winter is coming – ISA limits look set to be frozen

By Mike Narouei, Content Producer at Boring Money

2 April, 2021

From feast to famine: Is the ISA party coming to an end? Savers and investors have added thousands more to ISAS thanks to rising subscription limits. But is the party set to come to an end? Will Rishi’s decision to double the JISA allowance be the last rise in ISA subscription limits?

As the ISA season draws to a close, Boring Money decided to take a look at a bumper decade for the UK’s flagship savings and investment product.

Our analysis found that the steady growth of ISA subscription limits means investors have been able to put tens of thousands more into ISA accounts. But that could all be set to change…

Ten years ago at the March 2011 Budget, the government confirmed the introduction of the Junior ISA to replace Child Trust Funds, and later opted to raise the limit on the amount of money that could be paid in from £1,200 to £3,600 a year.

It was a sign of things to come, and both the Adult and Junior Isa subscription limits have gone up much faster than inflation since then.

Today you can put £20,000 a year into an Adult Isa and £9,000 into a Junior ISA, and there are just a few days left to make use of the 2020/21 allowance.

This chart illustrates just how much more we’ve been able to save thanks to the growth in ISA subscription limits:

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But this week Boring Money CEO, Holly Mackay, spoke to the ( about the possibility of ISA limits being frozen.

“There are signs that the ISA party is being put on hold, Holly said. “As the Chancellor tightens his purse strings it is hard to see that these types of increases to ISA allowances will continue.”

It is impossible to say for sure what will happen, but if ISA subscription limits hit a standstill then savers will be able to pay less into their accounts in real terms because of the effect of inflation.

Government stats show that around one in five ISA subscribers already hit the £20,000 limit and that number could grow if ISA subscriptions are frozen. This would likely lead to more people investing in a general investment account where gains can be subject to tax.

If you are one of the savers and investors that could be impacted by this, you can always head to Boring Money Advice ( where you can ask our experts about your investment tax questions.