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Subscription limits for ISAs and Junior ISAs are as follows:
|Individual Savings Accounts (ISAs)||2018/19||2017/18|
|Annual investment limit||£20,000||£20,000|
|Help to buy ISA||£1,000 initial and £200 per month|
Greater ISA flexibility
The Lifetime ISA is for adults under the age of 40. They are able to contribute up to £4,000 per year (which is part of the £20,000 overall ISA limit), and receive a 25% bonus from the government. Funds, including the government bonus, from the Lifetime ISA can be used to buy a first home at any time from 12 months after the account opening, and be withdrawn from age 60. Withdrawal at other times may result in the loss of the government contribution and an exit charge of 25%.
- ISAs are available to those 18 and over.
- Junior ISAs are available to those 17 and under
- Stakeholder cash and medium term products can be held in your ISA.
- Investments in ISAs are free of income tax and capital gains but are liable to be included in the estate and potentially chargeable to inheritance tax.
- ISAs allow you to take your money out at any time without losing tax relief and furthermore you are not required to declare income and capital gains from ISA savings.
- Withdrawals can be replaced within the same tax year without using up any of the annual investment limit.
- The income tax credit is restricted to 20%. Capital gains tax deferral relief is also available.
- The allowance from 6 April 2018 is £20,000.
ISA investments can include bonds which are issued by Multilateral Institutions.