Make the most of each tax year
If you are over 18 and eligible to subscribe, you can save up to £20,000 this tax year in an ISA without paying Income Tax or Capital Gains Tax on the interest.
The maximum amount you can deposit in an ISA is subject to annual subscription limits. The annual subscription limit for the current tax year is £20,000. From 6th April 2024, for customers aged 18 and over, ISA regulations allow this to be saved in multiple cash ISAs, multiple stocks and shares ISAs, multiple innovative finance ISAs* or up to £4,000 into one lifetime ISA* with either the same or different providers in the same tax year.
Customers aged 18 or over, will only be able to subscribe to one type of cash ISA and one type of stocks and shares ISA in the same tax year with either first direct or HSBC. However, even if they subscribe to an ISA with first direct (or HSBC) they will still be able to subscribe to ISAs with other ISA providers (subject to eligibility and availability).
*first direct do not currently offer an innovative finance ISA or a lifetime ISA.
Transferring ISAs
ISAs can be transferred to another ISA, either with the same provider or someone new (but remember not all cash ISAs accept transfers in and some providers may charge for transferring an ISA out). Here's what you need to know:
- when an ISA is transferred, any amount transferred from previous years' allowances aren't counted in that year's allowance
- previous years' allowances do not need to be transferred in full, they can be split between different providers
- you can transfer cash or stocks and shares ISA balances to us, held with other providers, from previous or current tax years
- however any amount being transferred from the current tax year must be transferred as a whole and will count towards that year's allowance
- when transferring a stocks and shares ISA, your stocks and shares ISA manager will, after receiving the instruction to transfer, sell your shares and make the transfer in cash - and this could mean a loss of income or interest whilst the transfer is being made.
If you already have a Cash ISA, but haven't subscribed to it in the last tax year, you won't be able to subscribe in the current tax year unless you reactivate it. To reactivate your ISA and make further subscriptions, please download the Cash ISA reactivation form.
The value of the tax benefits will depend on your individual circumstances and could change in the future.