ISA Allowance Dates for 2022/23

As a tax wrapper, the tax-free allowance for ISAs runs concurrent with the tax year: from 6th April to 5th April.

What is the ISA deadline for the 2022/23 tax year?

The deadline for using your ISA allowance is 5th April 2023. This is the end of the tax year and after this date your tax-free ISA allowance for 2022/23 is gone.

What happens if I don’t use my ISA tax-free allowance before this date?

ISA allowances don’t carry forward to the following tax year, any unused allowance is lost after the end of the tax year and a new allowance becomes available at the start of the new tax year.

The current tax-free ISA allowance is £20,000. Of this, a maximum of £4,000 can go in to a Lifetime ISA.

A Junior ISA has a separate allowance, because– while parents, guardians, and friends and family can contribute to a Junior ISA, –the money in the tax wrapper belongs to the child. The Junior ISA allowance is currently £9,000. 

Can I roll over my unused allowance after the ISA deadline of April 5th?

No. It’s not possible to roll over unused allowance. For example, if you only put £10,000 into a stocks and shares ISA this year, you cannot put £30,000 in next year.

Will I get a new ISA allowance automatically next tax tear?

Yes. However, you should be aware that the government can, and does, change the ISA allowances from time to time. You can check their website to stay abreast of any changes and plan your ISA investments accordingly.

How do I make the most of the ISA tax-free allowance before April 5th?

The best way to make the most of your allowance is to use as much of it as you can because the money in your ISA, as well as any returns and income it makes, is free from capital gains and income tax. This is why an ISA can be a good way to invest.

It is also worth noting that you may benefit from contributing to your ISA early in the tax year. For example: if you invest £20,000 in a stocks and shares ISA early in the tax year, then any returns will have a better chance of compounding because they are invested for longer.

What happens if I have reached the ISA limit before the ISA deadline?

You won’t be able to invest any more in an ISA before you get a new allowance at the start of the next tax year on April 6th.

What happens if I have to do everything last minute?

Your ISA provider should be able to assist you. At Nutmeg we’ll be on hand towards the end of every tax year to let you know the key cut-off dates for ISA payments and to remind you that you may still have some of your tax-free allowance left up to use.

If you’re paying into your ISA by open banking payments, debit card, Apple Pay or Google Pay then you can do this right up to 23:59 on April 5th.

If you’re using any other method of payment, then it is likely that you will have to pay in by an earlier date.

Risk warning

As with all investing, your capital is at risk. The value of your portfolio with Nutmeg can go down as well as up and you may get back less than you invest. A stocks and shares ISA may not be right for everyone and tax rules may change in the future. If you are unsure if an ISA is the right choice for you, please seek financial advice.

A stocks and shares Lifetime ISA may not be right for everyone. You must be 18–39 years old to open one. If you need to withdraw the money before you’re 60, and it’s not for the purchase of a first home up to £450,000, or a terminal illness, you’ll pay a 25% government penalty. So you may get back less than you put in.

Compared to a pension, the Lifetime ISA is treated differently for tax purposes. You may be better off contributing to a pension.

If you choose to opt out of your workplace pension to pay into a Lifetime ISA, you may lose the benefits of the employer-matched contributions.

If you are unsure if a Lifetime ISA is the right choice for you, please seek financial advice.

To open a Nutmeg JISA, your child must be under the age of 16 and funds cannot be withdrawn until your child turns 18. Tax treatment depends on your individual circumstances and may be subject to change in the future.

If you are unsure if a Junior ISA is the right choice for you and your child, please seek financial advice.