Stocks and Shares ISA | Investment ISA 2023-2024 | Nutmeg - Nutmeg (2024)

FAQs

Will the ISA allowance increase in 2024? ›

Frozen ISA allowances for the 2024/25 tax year

Despite some calls for an increase in annual allowances, the government has frozen these limits for this tax year (6 April 2024 - 5 April 2025). This means the overall ISA allowance is still £20,000 per tax year.

The personal ISA allowance (the maximum you can contribute across all types of ISA in a single financial year) is £20,000. This means you can pay up to £20,000 into most ISAs, or split that total between the various types of adult ISA available. This allowance has remained unchanged since 2017.

There are many factors why you might see a drop in value and you won't know for certain why that might be. It could be the specific company, the sector or the whole market experiencing some turbulence. If it's your first time seeing a drop in your investments, don't panic.

At Nutmeg, we offer a stocks and shares ISA, a Lifetime ISA (LISA) and a Junior ISA (JISA). When you set up a stocks and shares ISA with Nutmeg, we apply the ISA wrapper to all your ISA and LISA pots.

As of 6 April 2024, you can now open more than 1 cash ISA each year. the deposit limit is still 20k over how may you have in each tax year.

Don't pay tax on your savings interest? Then cash ISAs are probably not for you. If you do, and a cash ISA works, then make sure you check your rates as most earn diddly squat. That's the message from MoneySavingExpert.com founder Martin Lewis in the latest episode of ITV's The Martin Lewis Money Show Live.

Putting money into an ISA

Every tax year you can save up to £20,000 in one account or split the allowance across multiple accounts. The tax year runs from 6 April to 5 April. You can only pay into one Lifetime ISA in a tax year. The maximum you can pay in is £4,000.

You can open another Cash ISA, as long as you only pay money into one during the tax year. You can't open a new one and keep saving into your old Cash ISA. If you have lots of ISAs from previous tax years, you might be able to transfer your ISA.

You can even pay into multiple Cash, Stocks and shares or Innovative Finance ISAs in the same tax year, if you stay within the overall ISA allowance. There's still restrictions on multiple Lifetime ISAs or Junior ISAs.

What happens if a Stocks & Shares ISA or SIPP provider goes bust? Shares in a Stocks & Shares ISA or a Self Invested Personal Pension are protected differently from cash in a Cash ISA. They are called "risk-based investments". With investments, the level of protection is £85,000 per person, per authorised firm.

Should I keep my money in a stocks and shares ISA? ›

Investing is for the long term

As with all investing, it's recommended that you invest your money in a stocks and shares ISA for at least three years, and you keep your money invested for as long as possible. Staying invested for longer allows your investment to grow and to better weather any market volatility.

However, with a Stocks and Shares ISA, your growth depends on how well your investments are doing and how much they're worth when you sell them. Basically, stock markets fluctuate due to things like the news and market trends, and the value of your investments can go up and down as a result.

Nutmeg is required to comply with the rules of the Financial Conduct Authority (“FCA”) which, in short, require that all our customers' assets are held securely and separately from Nutmeg's assets. Nutmeg has processes and controls in operation which ensure these rules are followed.

One helpful factor made all the difference: if Nutmeg went bust, your investments would be protected by the Financial Services Compensation Scheme up to a value of £85,000, just like in a savings account.

UK-based robo-advisor Nutmeg has been acquired by JP Morgan Chase to form the basis of the bank's digital wealth offering outside of the US. The two companies had partnered in 2020 to launch a range of ETFs under the Smart Alpha name. Nutmeg will now be wholly owned by JP Morgan.

The Government puts a cap on how much you can put into your ISA or ISAs in any tax year (from 6 April – 5 April). The ISA allowance for 2024/25 is set at £20,000. The ISA limit for Junior ISAs is £9,000 for 2024/25.

The last time the JISA annual allowance changed was in April 2020, when it went from £4,368 in the 2019/2020 tax year to the £9,000 that's still active today. Previously, the allowance had been increasing steadily each year from £3,600 in 2011, when JISAs were introduced.

He said this would “provide them with a potential ISA contribution of £29,000 in total” before adding it would be “the biggest allowance anyone at any age receives”. However, Mr Khalaf noted: “This loophole is being closed from April 5 this year when the minimum age to open a Cash ISA will be raised from 16 to 18.”

What happens if I go over the annual ISA allowance? Most providers will stop you from going over the ISA allowance limits, but if you have ISAs with multiple providers then this is an easy mistake to make. If you do go over the limit, the best thing to do is contact HMRC by calling their helpline on 0300 200 3312.