Tax Rates & Allowances
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ISAs
The ISA investment limits are as follows:
| 2019/2020 | 2020/2021 | 2021/2022 | 2022/2023 | |
|---|---|---|---|---|
| ISA for shares and/or cash | £20,000 | £20,000 | £20,000 | £20,000 |
| Junior ISA and Child Trust Fund | £4,368 | £9,000 | £9,000 | £9,000 |
The ISA savings maximum will stay at £20,000 for 2020/21 and 2021/22, according to the Spring 2020 Budget. The annual savings limits for Junior ISAs and Child Trust Funds will, however, increase to £9,000 on April 6, 2020.
First-time buyers can open a Help to Buy ISA from 1 December 2015 to help save for their first house. The government will add a 25% bonus to each ISA, up to £3,000 per ISA.
+which is paid when the money is utilised to purchase a home. The Help to Buy ISA is still active for existing account holders, even though it will be phased out in November 2019.
Individuals aged 18 to 40 who live in the United Kingdom can open a lifetime ISA to save up to £4,000 each year starting on April 6, 2017. Up to £1,000 per year, the government will provide a 25% bonus. From the age of 60 onwards, or when the saver is terminally sick, the funds can be taken. After the account has been open for at least 12 months, the funds can be utilised to help the saver purchase their first property for up to £450,000. If the funds are used for other reasons, the government bonus will be forfeited.
Premium Bonds
Premium bonds allow individuals to invest up to £50,000. Any winnings are not subject to taxation.
For each £1 bond number, the odds of winning a prize are now 24,500 to 1. The current yearly prize fund interest rate is 1.40 percent (December 2017). Each month, there are two £1 million awards and four £100,000 rewards.
