You can’t carry over any unused ISA allowance into the following tax year.
Couples can both use their ISA allowance, which means between them they can invest a total of £30,480 each tax year.
Children who were not eligible for a Child Trust Fund (CTF) also have their own, Junior ISAannual allowance. The current allowance for 2016/17 is £4,080.
You can choose to save in the following ways:
Use the full £15,240 in a stocks and shares ISA.
Use the full £15,240 in a cash ISA.
A combination of amounts between a stocks and shares ISA and cash ISA up to the overall limit of £15,240.
The tax efficiency of ISAs is based on current rules. The current tax situation may not be maintained. The benefit of the tax treatment depends on individual circumstances.
Stocks and shares ISA
Please remember the value of your investment and any income from it may fall as well as rise.
You may get back less than you invest.
Although there is no fixed term you should consider stocks and shares ISAs and unit trust investments to be medium to long term, ideally five years or more.
Please remember the value of your child’s investment may fall as well as rise and your child may get back less than the amount invested.
The money invested in a stocks and shares Junior ISA is locked away until your child becomes 18 and then rolls up into an adult ISA. You should consider it to be a medium to long-term investment, ideally of five years or more.
Stocks and Shares ISA
Invest in a range of unit trusts with a tax-efficient ISA.