When is the ISA deadline? Everything you need to know and how to get started with one

There has been plenty of discourse over the past few weeks regarding Cash ISAs, with chancellor Rachel Reeves considering cutting the amount of money people can put into one each year.

But that isn’t the only type of ISA people can have, of course, with stocks and shares ISAs being a popular - and important wealth-building - alternative, along with several other options.

However, while the perks on offer from putting money into an ISA are excellent, you shouldn’t delay over opening one or putting money in if you’ve been considering doing so - because at the end of the financial year, the limits reset and there’s no carry-over to the next one.

In terms of your ISA allowance, it’s very much a case of use it or lose it.

So, when are the cut-off dates and the limits - and what else do you need to know if you’re just starting out?

Easy one: the ISA deadline is the tax year-end in the UK. So, that means it’s 5 April.

That is the last day you can add money to your ISA (or ISAs) and have it count towards the current tax year’s contribution; on 6 April your allowance resets and anything you haven’t used from the previous year is forfeited.

Of course, that isn’t always too much of a problem - the ISA allowance is £20,000 per tax year and maxing it out is not possible for many people.

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But if you do have that cash available, or you land a windfall for any reason - that could anything from inheritance, severance pay, winnings or anything else whatsoever - and are considering putting it into your ISA, then make sure the amounts don’t cross your allowance and get it in before the deadline.

The £20k maximum allowance is split across all types of ISA that you use, but it’s up to you how you want to divide it, factoring in certain rules for each type.

Gains made within ISAs are tax free, be it dividends, interest or capital growth.

There’s no one right answer here because it very much depends on personal circumstances, most notably how much you intend to put in, what you are saving for and what your timeframe is.

Get a free fractional share worth up to £100.
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Get a free fractional share worth up to £100.
Capital at risk.

Terms and conditions apply.

Go to website

For example, while over the long term the best wealth-building tool is likely to be a stocks and shares ISA, as it can outperform returns from cash across a long period, investing in the stock market wouldn’t be suitable for someone with a near-term expectation of wanting to withdraw or use their money.

If you already have a savings account with money in and a decent interest rate, then perhaps stocks and shares is your next natural step.

If you’re just starting out on saving, then a Cash ISA may make more sense - and if it’s a house you’re after, then of course there may be more benefit in a Lifetime ISA. However, always check the full rules around what you can and can’t use the money for, as there are limits and regulations around house price and so on. If you’re a parent, you may also be considering a Junior ISA - here’s all you need to know on those.

Absolutely not. Years ago perhaps it was the case with paperwork, telephone calls, no immediate access to view your current financial situation and so on - but the digital age means that no longer applies.

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You can open an ISA in minutes on an app and later you can log in to view your money, your assets, whatever you hold, in seconds.

You should certainly do your research on who you open your account with, but that goes the same for any money product.

Once you’ve decided on your objectives and picked out your ISA type, then chosen your provider...it’s time to open your account. Then the fun bit!

Putting in your first amount of money will be exciting and is the start of your new journey, whether that’s in investing, saving or for another end goal. But the important part, the part which will really help you achieve that, is in doing it consistently.

The easiest way is to set up a standing order, from your main bank account into your ISA, for a set amount each week or month, or whenever works best for you. Automating this helps make it a habit.

But either way, treat it as a “bill” you need to pay and make it a first priority, alongside rent or mortgage payments and other bills you know are regular occurrences; this will help it become something you do in your mind, and before you know it your pile will grow considerably. The positive psychology of seeing your wealth grow is undeniable.

It genuinely doesn’t matter if you are doing it with small amounts - you don’t need thousands to start investing, you just need to start, and then make use of time. And if you’re saving, every month of automatic money movements takes you a step closer to your end goal without you even having to think about it.

When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.