What is the new ‘British ISA’?
A new type of ISA is set to be introduced with the intention of boosting investment in British businesses.
What you need to know about the British/UK ISA
The most important thing to know about the British ISA, also known as the "UK ISA", is how it will affect the allowance limit – the amount you’re allowed to pay into ISAs each tax year.
The British/UK ISA (Individual Savings Account) will come with its own allowance limit: you’ll be able to pay in up to £5,000 each tax year.
That’s on top of the current £20,000 allowance limit. So, you’ll be able to pay up to £25,000 into ISAs each tax year, as long as one of those ISAs is a British/UK ISA.
We're told that the British/UK ISA will support UK businesses. We don't yet know what the definition of a "British business" will be for the purpose of inclusion.
We also don't yet know if the British/UK ISA will be available as stocks and shares, cash or both.
When will I be able to invest in a British/UK ISA?
We're told that the government is consulting on when to introduce the new ISA. We'll share more as soon as we know.
How do I open a British/UK ISA?
The new UK ISA hasn't yet been launched as the details are still being discussed. Once everything has been decided, some providers will give you the option to open one.
What you need to know about the British/UK ISA
ISA allowance limits
Until the British ISA is introduced, the overall limit for how much you pay into ISAs is £20,000 each tax year (tax year runs 6 April to 5 April each year). The lifetime ISA limit counts as part of the overall ISA limit.
| Type of ISA | Annual allowance limit |
|---|---|
| Cash ISA | £20,000 |
| Stocks and Shares ISA | £20,000 |
| Lifetime ISA | £4,000 |
| Junior ISA | £9,000 |
| Innovative finance ISA | £20,000 |
| British/UK ISA | £5,000 |
ISA allowance limits
Until the British ISA is introduced, the overall limit for how much you pay into ISAs is £20,000 each tax year (tax year runs 6 April to 5 April each year). The lifetime ISA limit counts as part of the overall ISA limit.
| Type of ISA | Annual ISA limit |
|---|---|
| Cash ISA | £20,000 |
| Stocks and Shares ISA | £20,000 |
| Lifetime ISA | £4,000 |
| Junior ISA | £9,000 |
| Innovative finance ISA | £20,000 |
| British/UK ISA | £5,000 |
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