As a UK resident over 18, you will receive an annual ISA allowance of £20,000 (for the 20/21 tax year). This means you can pay a maximum of £20,000 into your ISA to allow it to grow without paying tax on any income derived from it.
Crucially, this £20,000 allowance can’t be carried forward to the next year so any decisions to invest have to be made before 5th April 2021 – meaning you don’t have much time!
From a tax perspective, if you are paying into savings account and earning interest, then ISAs still have the advantage over other savings accounts as the interest isn’t taxed, until you reach £20,000.
Investments by their nature carry an element of risk and you should speak to a financial advisor before making such decisions based on your circumstances.
