When Does the ISA Allowance Reset?

The ISA allowance determines how much you can save or invest tax-free each year. Many savers wonder when the allowance resets, what happens if they don’t use it, and whether they can carry it over.

This guide explains when the ISA allowance resets, what happens to unused allowance, rollover rules, and how to maximise your tax-free savings.

What is the ISA Deadline for the Current Tax Year?

The ISA tax year runs from 6 April to 5 April the following year. The deadline for using your ISA allowance is midnight on 5 April. After this date, any unused allowance is lost, and a new allowance is granted for the next tax year.

What is the ISA Allowance for the Current Tax Year?

For the 2024/25 tax year, the ISA allowance is £20,000 per person. This means you can deposit up to £20,000 across different ISAs, but you cannot exceed the total allowance.

What Happens If I Don’t Use My ISA Allowance Before This Date?

If you don’t use your full ISA allowance before 5 April, the unused amount does not roll over to the next tax year. You start fresh with a new £20,000 allowance on 6 April.

For example, if you only deposit £10,000 into your ISA before the tax year ends, you cannot carry forward the remaining £10,000. The new tax year gives you a fresh £20,000 limit.

Can I Rollover My Unused Allowance After the ISA Deadline of 5 April?

No, ISA allowances do not roll over. Each tax year has a fixed allowance, and any unused portion is lost when the tax year ends.

If you want to make the most of your ISA, ensure you contribute before 5 April to use as much of the allowance as possible.

Will I Automatically Get a New ISA Allowance Next Tax Year?

The ISA allowance resets automatically on 6 April each year. If the government keeps the limit at £20,000, you will be able to deposit up to this amount again, regardless of whether you used last year’s allowance or not.

How Do I Make the Most of the ISA Allowance Before the Deadline of 5 April?

To fully utilise your ISA allowance, consider:

• Setting up monthly contributions instead of waiting until the end of the tax year.

• Using different types of ISAs, such as a Cash ISA for emergency savings and a Stocks & Shares ISA for long-term growth.

• Transferring unused cash savings into an ISA before 5 April.

Many investors max out their ISA allowance in the last few weeks before the tax deadline, so acting early can help avoid rushed decisions.

What Happens If I Reach the ISA Limit Before the Deadline?

If you max out your £20,000 ISA allowance before the 5 April deadline, you cannot contribute more until the new tax year begins on 6 April.

However, you can:

• Transfer ISAs to better-performing providers without affecting your allowance.

• Invest in a pension such as a Self-Invested Personal Pension (SIPP) for additional tax-free benefits.

• Consider other tax-efficient investments, like Venture Capital Trusts (VCTs) or Enterprise Investment Schemes (EIS).

Where Should I Invest If I’ve Maxed Out My ISA Allowance?

If you have reached your ISA limit and still have funds to invest, consider:

• Pensions – Contributions receive tax relief, helping long-term savings.

• General Investment Accounts (GIAs) – Taxable investment accounts with fewer restrictions.

• Premium Bonds – A tax-free savings option with prize draw winnings instead of interest.

Diversifying beyond ISAs can spread risk and optimise tax efficiency.

Final Thoughts

The ISA allowance resets every 6 April, and any unused allowance from the previous tax year is lost. To maximise your tax-free savings, contribute before 5 April each year. If you have already used your full allowance, consider alternative tax-efficient investments like pensions or general investment accounts.

To check current ISA limits and rules, visit GOV.UK.