The ISA allowance is £15,240 for the year 2016/2017. Unlike previous years, investors have the ultimate choice as to how much if any of their ISA allowance they allocate to a ‘cash ISA’ or a ‘Stocks & Shares ISA’.
That means that an investor could invest the full allowance in shares, or the full allowance in cash or they could invest just £240 in cash and £15,000 in shares. It is totally up to the investor to allocate their allowance how they please. Although once funds are withdrawn from an ISA, the allowance isn’t regenerated for that year.
In order to use the ISA allowance, investors or savers must take action by April 5th, the end of the tax year. It is important to note that the ISA allowance does not roll over, so investors and savers should make use of the allowance year-upon-year where possible.