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Published: 26 January 2024

What’s an ISA allowance?

Think of an ISA (Individual Savings Account) as a special piggy bank where the money you put in can earn interest tax-free*. But there’s a limit on how much you can save in this piggy bank each year – this is your annual ISA allowance.

For the 2024/2025 tax year that amount is £20,000 per year.

You can split your allowance across different types of ISAs, such as Cash ISAs, Stocks and Shares ISAs, Innovative Finance ISAs and Lifetime ISAs. Just as a heads up, you can only have one of each kind of ISA, and we only offer Cash ISAs at Leeds Building Society. Each type of ISA caters to different financial needs and goals, but the one thing they have in common is that you don’t have to pay tax on the interest you earn in them**.

When does your ISA allowance reset?

The ISA allowance lasts for a full tax year, starting from 6 April one year and ending on 5 April the next year. Each year on 6 April, you get a fresh ISA allowance that matches the annual limit set by HMRC. If you don’t use it all up by 5 April the following year, you can’t carry it over – so use it or lose it!

Will transferring an ISA use your allowance?

Worried about moving your ISA savings around? Don’t be.

Shifting your money from one ISA to another doesn’t use up any of your yearly allowance, as long as it’s done as an official ISA transfer.

But be aware, if you take the money out and then put it back into an ISA, it will count towards your limit (unless you have an ISA that offers flexible withdrawals and replacements).

Read more about ISA transfers >

How many ISAs are you allowed?

You can open one of each type of ISA every tax year – so one Cash ISA, one Stocks and Shares ISA, and so on. But remember, all your ISA savings added together shouldn’t go over your annual ISA allowance of £20,000.

Some ISAs also have age or contribution limits, such as the Lifetime ISA, which has a £4,000 annual contribution limit and is only available to people aged 18 to 39.

What happens if you go over your ISA allowance?


If you accidentally go over your annual ISA limit, HMRC will get in touch and tell you what you need to do. You might have to take out the extra cash, pay tax on the amount you’ve gone over or do something else to fix the problem.

ISAs are a great way to save some cash without the taxman dipping into your earnings. Just keep an eye on those limits and rules, and you’re good to go!

*Tax-free means that interest payable is exempt from income tax.

**The tax treatment depends on the individual circumstances of each customer and may be subject to change in the future.

This guide is intended as a summary only and does not constitute legal or financial advice given by Leeds Building Society. No reliance should be placed on this guide. We recommend that you seek independent legal advice and/or financial advice if you have any questions or queries.

Cash ISAs are available to individuals aged 18 or over who are resident in the UK for tax purposes. 

Deposits in any tax year are subject to the limits set by HM Revenue and Customs (HMRC) and may therefore be subject to change.

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