20,000 a year isa limit

Hi there all i have a question if someone can awnser please. I know stock and share isa has a maximum £20,000 tax free investment per year.

Question is if i invest say £18,000 from april to January then withdraw £8000 February, can i still invest £10,000 till April to make it up to the £20,000 or does the £8,000 i withdraw still counts part of the £20,000 per year allowance?

Mostly no, but some providers offer something called a flexible ISA, whereby you can withdraw and reinvest.


It still counts in Freetrade - so technically you can only deposit the leftover of £2,000 as you didn’t hit the max £20,000 due to that £18,000 from April to January.

If you didn’t withdraw the £8,000 and just sold the stocks and its still there as cash you can play with that to buy/sell stocks + the £2,000 that you can still deposit.

I hope I made sense :slight_smile:


Thank you all for replying really appreciate it.

What will be the situation if i have been investing in a isa for two separate years and this financial year only invested £7000 but over two years total investment is £18,000. And this year sold and withdraw £7,000 cash , what will be the remainder amount i can invest in this financial year?

Hopefully i have explained that qestion ok.

The total amount you can invest in a stocks & shares ISA resets each tax year. The limit could change in the future, but it has been a maximum of £20K for a few years. Note, the £20K limit is shared across cash ISAs and Stocks & Shares ISAs i.e. You could invest in a tax year £11K in a cash ISA and £9K in a stocks & shares ISA etc.

So in year 1 you can invest a maximum of £20K in your ISA.
In year 2 you can invest a maximum of a further £20K in your current ISA OR a new ISA with a different provider.

Freetrade does not have a flexible ISA, so if you invested £7K in the current tax year, then withdraw £7K in this tax year, you would still able to invest a further £13K (i.e. £20K limit minus £7K) into the ISA during this tax year.


Thanks tradeRunner , explained brilliantly :clap: