Cash ISAs are the main cash-based tax-free savings product offered by building societies and they are a particular strength of building societies, with the sector regularly having over 35% of the market.
An Individual Savings Account (ISA) is not a product in its right but, in effect, a tax wrapper around a savings or investment product, which protects the customer’s interest from being taxed. An individual may invest in two separate ISAs in any single tax year - a cash ISA and an investment ISA, which can be with the same or different providers.
Annual subscription limits for 2021/22 and 2022/23
Subscription limits for ISAs for 2021/22 is £20,000 and will remain the same for 2022/23. This full amount can be held in either cash, stocks and shares, or any combination of the two. Individuals are permitted to transfer any funds previously invested in stocks and shares into cash outside of annual subscription limits.
Further information on ISAs can be found here.
From 6 April 2016 ISA savers have been able to withdraw and replace money from their cash ISA without counting towards their annual ISA subscription limit for that year, as long as the repayment is made in the same tax year as the withdrawal. This enables savers to access their ISA savings more flexibly without losing the benefits they have built up. This also covers cash held in stocks and shares ISAs. Flexible ISAs are optional and not all building societies offer them. Further information is available in the leaflet linked to below.
Flexible ISAs - The guidance provided in this leaflet is up to date but allowances shown are for illustration only as they relate to an earlier tax year.
A tax-free children's savings account - Junior ISAs - were launched in November 2011 as a replacement for the Child Trust Fund. Further information on Junior ISAs can be found in our Junior ISAs factsheet, linked to below.
Junior ISAs - BSA Factsheet
Help to Buy ISA
A new form of ISA to help first time buyers save for a deposit launched on 1 December 2015. Further information can be found in the Help to Buy ISA factsheet, linked to below.
Help to Buy ISA - BSA Factsheet
Additional Permitted Allowances
For information on additional permitted allowances following the death of a spouse or civil partner see our separate factsheet, linked to below.
Additional Permitted Allowances Factsheet
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