Wondering How Much You Can Invest in A Stocks and Shares ISA?

POSTED ON Wednesday, 07 October, 2020

If you’re looking to make the most of you 2020/2021 ISA allowance, then the most attractive rates on offer to you will be Stocks and Shares ISAs. If you’re wanting to put your money into a tax-free wrapper and gain interest from investments then you’ll want to be opening a Stocks and Shares ISA. But how much money can you actually put into a Stocks and Shares ISA? 

First things first – what is a stocks and shares ISA?

An Individual Savings Account (ISA) is a tax-efficient way of making your savings work for you in the best way possible. There are lots of different kinds of ISAs, but for the sake of this blog we will be focusing on Investment ISAs (also known as a Stocks and Shares ISA).

A Stocks and Shares ISA can also be known as an Investment ISA – and largely, it does what it says on the tin. You are able to put your money to work in investments, but this money is kept within the tax-free ISA wrapper, meaning that you are not charged capital gains tax or income tax on any of the returns you gain from these investments.

With a Stocks and Shares ISA, you can invest your money in a variety of different ways (As there are a variety of different types of investment ISAs), including…

  1. Ethical Investment ISAs
  2. ETF Investment ISAs
  3. Fund Supermarket ISAs
  4. High Income Investment ISAs
  5. Gold Investment ISAs
  6. Index Tracker ISAs
  7. Share Dealing ISAs
  8. Growth ISA

How much can I put in my Investment ISA?

There is a government-legislated limit on the amount that you can put into any ISA each tax year.

For tax year 2020/2021, this amount is £20,000 per person, per year.

So, if you’re lucky enough to have £20,000 to spare for investment purposes, you could theoretically choose to put the whole lot into an Investment ISA in one go. You could also split your allowance over different types of ISA accounts.

But – its important to remember that you can only open one investment ISA per person per year, so if you’ve already opened one Investment ISA for tax year 2020/2021 then you will need to wait until the next tax year in order to open another one – or transfer your ISA to another provider.

Where Can I get one?

You can get an Investment ISAs from lots of different platforms, including (but not limited to):

  1. Banks
  2. Building societies
  3. Financial Services Companies
  4. Credit Unions
  5. Friendly societies
  6. Peer to peer lending services
  7. Crowdfunding companies

For an overview of the best rates, visit our Investment ISA page where you can find and compare a variety of different rates and ISA providers.