The ISA allowance for this tax year (6th April 2018–5th April 2019) is £20,000.
You can split your annual ISA allowance any way you like between a stocks and shares ISA, a cash ISA, a Lifetime ISA and an innovative finance ISA. However, you can only pay a maximum of £4,000 into a Lifetime ISA per tax year, and you can only contribute to one of each type of ISA per tax year.
With Nutmeg, provided you’re eligible, you can have a stocks and shares ISA and a stocks and shares Lifetime ISA, or just one of them. Nutmeg does not offer cash ISAs or innovative finance ISAs.
If you invest more than this year’s ISA allowance in your Nutmeg account before the end of the current tax year, any investments beyond the ISA allowance will be treated as a general investment account and won’t be sheltered from tax.
You can save your entire annual ISA allowance with Nutmeg.
Or you can divvy up money between a cash or innovative finance ISA elsewhere and your Nutmeg stocks and shares ISA and Nutmeg stocks and shares Lifetime ISA – in any combination you wish – so long as you don't contribute more than £4,000 into a Lifetime ISA and more than £20,000 in total during the current tax year across all your ISAs.
You can take money out of your Nutmeg ISAs whenever you want. You should remember, however, that when you withdraw money from a stocks and shares ISA, that part of the allowance remains used. This means, for example, that if you reach the ISA limit and then make a withdrawal from your ISA account, the money cannot be put back in.
Furthermore, you will be charged a 25% government penalty if you withdraw money from a Lifetime ISA after 5th April 2018 and it’s not to buy your first home, because of a terminal illness or once you’re 60. Find out more about Lifetime ISAs.