My ISA Allowance


I’ve got an S&S ISA with Freetrade. On the Account tab in the app, I see an allowance remaining – I’m unclear if this allowance is taking into consideration contributions and withdrawals? Or if it’s just showing the amount contributed. Hopefully it’s factoring in anything I’ve taken out and so showing a correct figure of how much I have available to contribute before the end of the tax year.

Could anyone please confirm if it does factor in contributions & withdrawals?

You can deposit upto £20k per year. The tab which you see is how much is left which you can contribute to your ISA this will decrease as you deposit more into your account irrespective of withdrawals. Once you withdraw any money you can’t put it back in.

It will reset each financial year.

Freetrade’s ISA is not a flexible ISA. Flexible ISA’s take withdrawals under consideration.

At the moment, Freetrade ISA doesn’t. This means that if you deposited £10k during the year, and withdrawn £3k you are allowed to deposit another £10k with Freetrade’s ISA. With a flexible ISA you could deposit £13k. Makes sense?


I thought flexible isa’s cash are only allowed (with certain providers) not stocks and shares isa’s

Apparently it is possible for SS ISAs to be flexible

Sorry to jump on this thread, as a newbie to the ISA world I have what I’m guessing is a simple question.

What happens to funds in the ISA that haven’t been used come April (5/6th). I.e. I have used 15k for shares but have 5k in reserve waiting for a dip. Can I still use this 5k after April for shares on top of next year’s 20k allowance?

Thanks all.

ISA allowances reset every financial year so there is no carry over of unused allowance.
If that 5K is already in your ISA then yes you can invest it whenever yo uwant




  • If I deposit money into my ISA before the deadline of 5 April 2021 but don’t actually invest it into any stocks until the next financial year (after 5 April 2021).

  • Let’s say I then buy stocks in June 2021 using this year’s allowance.

Will this impact my dividends or investments in any way as the dividends earned, RoI and growth etc will have been based on funds from a previous year?

Hope that question makes sense. I hope to put a little more in this year and then some more next year.

Thanks in advance.

I don’t fully understand the question but will try give some information.
Dividends are paid based on the stocks you own at the time of the ex-div date. It’s got nothing to do with when you funded your account.
Performance calculations will begin based on when you first funded your account. If the money is uninvested then your performance will be 0% until it’s invested. If you already have stock holdings then the cash will drag the performance

If you mean from a future tax perspective - no.

From a tax perspective, the only thing that matters is when you contribute new money into your ISA. You can contribute £20k per tax year. Once money is inside the ISA, it is out of the sight of HMRC, and it makes no difference at all if or when you buy shares, leave it as cash, or receive dividends or interest.

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In others words try to maximise as much as your isa allowance as possible before the april deadline and do the same next year and the year after that and so forth.

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I dun goofed today, I thought the cutoff was the 1st :man_facepalming:

Im a little salty the the freetrade solution is to say:
“You’ve already used your allowance on your ISA, so rather than rejecting the transaction and sending the money back, we’ve just put it in the other account you didn’t ask as to, where it will take 5 days to withdraw :+1:

it’s worth baring in mind for anyone looking to top up on their ISA, if you goof it will take (response time + 3-5 days to rectify)