ISA allowance

[Chris S]

The 2024/5 ISA allowance is £20,000. Am I correct in thinking that this is the total amount you can have in ISAs and not the amount that you can put in this year?

 

[sheddy]

Incorrect

£20K is your max annual contribution

 

[Moodyman]

There is no limit for total amount. But £20k is the max you can pay in each tax year.

 

[FrankCrank]

Thanks also, that answers a question I've had in my head.
I've recently become a tax payer again in the UK, and need to become more 'tax efficient'.

 

[Chris S]

Thanks also, that answers a question I've had in my head.
I've recently become a tax payer again in the UK, and need to become more 'tax efficient'.

The same here.

 

[Sterlo]

You are allowed to earn up to £1000 in interest (called a personal allowance) in a non ISA before you pay tax as well, they sometimes offer better rates than ISA's. I'm maxed out on normal savings and have ISA's as well.

 

[DCLane]

@Sterlo - Almost. Up to £1000 for a standard rate taxpayer, but only £500 for a 40% higher rate one and £0 if you're on 45% additional.

 

[Sterlo]

@Sterlo - Almost. Up to £1000 for a standard rate taxpayer, but only £500 for a 40% higher rate one and £0 if you're on 45% additional.

Sorry, I was assuming OP was a basic rate taxpayer, but point taken.

 

[Time Waster]

There's such a complex tax regime in the UK. How do you guys know these things?

 

[Moodyman]

There's such a complex tax regime in the UK. How do you guys know these things?

Yep, it’s no wonder the ordinary person gets dizzy when talking personal finance.

 

[vickster]

There's such a complex tax regime in the UK. How do you guys know these things?

Gov U.K./HMRC site + employer (or accountant)

 

[ebikeerwidnes]

Gov U.K./HMRC site + employer (or accountant)

Or IFA (Independent Financial Advisor)

 

[Alex321]

There's such a complex tax regime in the UK. How do you guys know these things?

Compared tio some countries, the UK regime for personal taxation is actually quite simple.

And all the necessary information is available on the government website.

 

[Sterlo]

There's such a complex tax regime in the UK. How do you guys know these things?

When it comes to savings, just plenty of reading up (plus Money Saving Expert). I work too hard for my savings without having to pay tax on any interest I earn, so I made sure I was clued up and move money about so that I get the best returns without the tax burden. I was hoping that they might increase the ISA limit but nothing yet.

 

[FrankCrank]

Am i right in thinking then, if you had accrued say 100k into an ISA over several years, all the interest earned each year is tax free?
Plus the possible £1000 interest allowance on non ISA savings, as mentioned above?

PS - I'm at the thin end of the wedge, IFA fees would cancel out any potential tax savings.