What are the ISA (Individual Savings Account) rules for 2022/23?

How much can I invest in an ISA?

You can invest up to £20,000 in an ISA in the current tax year that ends on 5th April 2023. 

You can only invest in one Stocks & Shares ISA in each tax year. 

If you’ve already invested in a Cash ISA in the current tax year, or plan to do so, you’re limited to investing a total of £20,000 across both ISA types. 

So if you put £5,000 in a Cash ISA, the most you can invest in a Stocks & Shares ISA this tax year is £15,000.  

When is the deadline for investing in a 2022/23 ISA?

The final deadline for investing in a 2022/23 ISA is 5th April 2023.

What if I don’t use my £20,000 ISA allowance by April 5th?

With your annual ISA allowance, it’s “use it or lose it”. If you don’t use your 2022/23 allowance by 5th April 2023, then it’s gone — you can’t carry it forward to use later.

So if you don’t invest in an ISA at all in the current tax year, you will have lost your £20,000 tax-free allowance for 2022/23.

And if you only invest £5,000 in an ISA but don’t use the remaining £15,000 of your allowance, then that £15,000 can’t be used later.

Why should I invest in an ISA?

Investment returns from ISAs are tax-free!

This means you pay no income tax or capital gains tax (CGT) when your investments go up in value or if they earn interest or dividend income.

Without an ISA, investors’ returns can be significantly reduced by tax.

Read more about why an ISA is nicer

Who can invest in a stocks & shares ISA?

Anyone aged 18 or over can invest in a Stocks & Shares ISA, provided they are resident in the UK (or a diplomat or similar if they don’t live in the UK).

How can I invest in an ISA?

Opening a Stocks & Shares ISA with InvestEngine is easy.

If you’re not an InvestEngine customer, simply visit our website and click on Get started. If you’re already a customer just log in to your InvestEngine account and select Add a new portfolio.

You can open an InvestEngine ISA with as little £100 and choose between commission-free DIY investing and our Managed portfolio service (where we build and manage your portfolio for just 0.25% a year). 

Important information

Capital at risk. The value of your portfolio with InvestEngine can go down as well as up and you may get back less than you invest.

The information provided is for the 2022/2023 tax year and is subject to change. InvestEngine are not tax advisers and the above information may not be applicable to your tax situation. If you are unsure as to your tax position please consider speaking to a professional tax adviser. Tax treatment depends on personal circumstances and may be subject to change. Eligibility to invest in an ISA depends on personal circumstances. ISA rules apply. ETF costs also apply.

This communication is provided for general information only and should not be construed as advice. If in doubt you may wish to consult a professional adviser for guidance.

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