What is the ISA allowance 2021/22?

15th March 2021

The new tax year will officially start on 6th April 2021 and end on 5th April 2022. With this year’s budget announced by Chancellor Rishi Sunak, we’ve gathered the updates and information you need on the ISA allowances 2021/22 for Stocks and Shares ISAs and Junior ISAs.

Whether you’ve been saving for the future for a short or long amount of time, or you’re looking to start a savings fund soon, we’ve included everything you’ll need to know about how much you can save tax efficiently in each type of ISA.

ISA allowance

Each year you’re given an allowance of how much you can save tax free, which can be used in one ISA or spread across multiple. However, this allowance doesn’t roll over each year and will refresh every April at the start of the new tax year, so if you don’t use it, you’ll lose it. Shepherds Friendly offer two types of ISA, a Stocks and Shares ISA and a Junior ISA.

Stocks and Shares ISA

As we enter 2021/22, the £20,000 annual tax limit for Stocks and Shares ISAs and Sustainable Stocks and Shares ISA will remain unchanged, since we saw an increase in 2017. Stocks and Shares ISAs are an excellent saving method if you are looking to gain greater gains than a regular cash ISA. However, like all investments there are risks and you may end up with less than you put in, but with our dedicated investment strategy we will aim to keep the risk low to medium.

Junior ISA

As we’ve seen with the 2021/22 ISA allowance, there is no change with the Junior ISA and Sustainable Junior ISA allowance and it will once again remain at £9,000 after increasing in 2020/21 from £4,368. Junior ISAs are an effective way to save tax-efficiently for a child’s future and you can start saving from £10 a month or with a £100 lump sum. A benefit of the Shepherds Friendly Junior ISA is that anyone can place a deposit in the plan, which is great if you’re a parent or a guardian or you if have nieces, nephews or grandchildren you’d like to see financially secure once they turn 18.

What to do now

If you haven’t already done so, now is the time to use your remaining ISA allowance from the 2020/21 tax year before it ends. If you are yet to start your savings journey, take a look at the Shepherds Friendly Stocks and Shares ISA and Junior ISA pages for all the information you’ll need to get started.