What happens if I exceed my ISA allowance?

The following explains what transactions are allowed and what transactions are not allowed in an Individual Savings Account (ISA), with examples of each.

Example of allowed transactions…

An ISA (Individual Savings Account) is a tax-free savings or investment account that gives you the opportunity to save or invest a certain amount of money every year, without having to pay tax on any growth in your investments or savings. There are 4 types of adult ISA available (stocks & shares ISA, cash ISA, innovative finance ISA , and lifetime ISA).  The interest on cash accumulates on a tax-free basis, as does income and capital gains made on investments…

Tax year runs from 6 April to the following 5 April. Each tax year’s Junior ISA subscription limit is specific to that year and can be checked on the HMRC website.   …

If you have accidentally paid too much into your child’s Junior ISAs your child will not get any tax relief on the excess payments you have made. The Junior ISA allowance is a combined annual limit across both types of Junior ISA: cash, and stocks and shares…