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From 6 April 2016 onwards, investors have been able to take money out of a cash ISA or a stocks and shares ISA and put it back in without losing that part of their allowance, provided they put it back in the same tax year.

This means that at Moneyfarm, a disinvestment will credit your ISA allowance for the current tax year allowing you to make a subsequent investment into your ISA within the same tax year.

Example:

You have £50,000 in your ISA of which £20,000 was invested within the 2022/23 tax year (ISA allowance = £0)

You disinvest £35,000 from your ISA in Jan 2023 (ISA allowance = £35,000)

You invest £25,000 into your ISA in March 2023 (ISA allowance = £10,000)

On the 6th April 2023 your ISA allowance is reset to £20,000 for the 2023/24 tax year and you’ve lost £10,000 from 2022/23 ISA allowance.

With the flexi-allowance ISA rule it means that you will always be in control when it comes to adding to or withdrawing from your Moneyfarm ISA.

Please note, money must be specifically within an ISA portfolio for it to be counted as within the ISA wrapper

Take a look at our handy guide to see the different types of ISAs you can select so that you can choose the best one depending on your needs and situation. 

An Individual Savings Account, or ISA for short, helps savers and investors grow their money in a simple and tax-efficient way. The main benefit of an ISA is that any money you grow will be tax-free. 

Stocks & Shares ISAs are a simple and tax-efficient way to grow your money over the long-term. You can invest up to £20,000 in your Stocks & Shares ISA each tax year, and any growth in the value of your money and any income build up is protected inside your tax-free wrapper. You can learn more about ISAs on this handy guide.

The Individual Savings Account, or ISA for short, helps savers and investors grow their money in a simple and tax-efficient way. The main benefit of an ISA is that you can grow your money tax-free. There are many different types of ISA and they are not a “one-size-fits-all solution ”. You should choose the best one depending on your needs and current situation. Stocks & Shares ISAs are a simple and tax-efficient way to grow your money over the long-term. You can invest up to £20,000 in your Stocks & Shares ISA each financial year, and any growth in the value of your money and any income can build up protected within your tax-free wrapper.
You usually have to pay capital gains tax on any profit you make on your investments above your annual allowance. This is £12,000 for the 2021/22 tax year.
If you invest your money in an ISA, you won’t need to pay a thing in capital gains or dividend tax. Making the most of the tax benefits available to you is crucial for maximising your returns over the long-term.
The tax benefits of an ISA are subject to change in the future.

You can learn more about ISAs on this guide

The tax year runs from 6 April until 5 April the following year and that’s when your ISA allowance automatically refreshes.

This tax year you can invest up to £20,000 in your ISA.

You can pay your whole allowance of £20,000 into a Stocks and Shares ISA, a Moneyfarm cash portfolio, or a combination of the two. Even if you have a cash ISA elsewhere, you can still open a Stocks and Shares ISA with Moneyfarm. You can choose between making a lump sum investment, and/or making regular contributions throughout the tax year. Your Moneyfarm ISA is flexible to suit you. Your annual ISA allowance expires at the end of the tax year and any unused allowance will be lost. It’s a case of ‘use it or lose it’, as your allowance can’t be rolled into the next year. With Moneyfarm, you can invest more than the ISA allowance, but any investments outside the wrapper threshold won’t be sheltered from tax. To learn more about how much you can put in your ISA, you can read our guide.

ISAs have generous tax benefits that can help you maximise your investment returns.

When you invest in an ISA, you’re not charged Capital Gains Tax (CGT) on any profit you make when you sell your investments. Everyone has an annual CGT exemption allowance of £12,000 in the 2021/22 financial year. You’ll be charged CGT on any profit made above this annual allowance if you didn’t invest in an ISA.

Any losses made on your investments in your Stocks & Shares ISAs can’t be used to offset capital gains on your other investments.

ISAs also protect any income from your investments in your tax-free wrapper.

Outside of an ISA, you don’t pay tax on the first £2,000 of dividends you get in the tax year. Above this allowance, you pay tax of 7.5-38.1%, depending on your income tax band. If you invest in an ISA, you don’t pay a thing.

The tax treatment of a Moneyfarm Stocks & Shares ISA depends on your individual circumstances and may be subject to change in the future.

A Stocks and Shares ISA helps protect your money from inflation and grow it for the family milestones ahead of you. On top of this, any money is protected in a tax-free wrapper.

A Stocks & Shares ISA is often used for goals five years away, or more. As markets move up as well as down, there’s an opportunity to grow your money, and often this can help to protect you from inflation risk.

At Moneyfarm we build portfolios with a diverse range of assets based on your investor profile and time horizon to ensure you’re comfortable with any losses, whilst also aiming to deliver long-term returns.

To open a Stocks & Shares ISA you must be at least 18 years old and must be a UK resident for tax purposes.

Different investment accounts are suited to different financial goals – learn more about ISAs and SIPPs with our guide.

You can withdraw money from your ISA whenever you need to, without it impacting your ISA allowance from that tax year. Moneyfarm does not charge you to withdraw from your ISA, as we know how important it is that you have flexible access to your investments. However, the longer you can keep your money invested, the more you can expect your money to grow to help you have a more financially secure future. Learn how to withdraw your money from a Stocks and Shares ISA

Yes we do! Check out our Junior ISA page for more information.

No, we do not offer the Help-to-Buy or Lifetime ISA.

No, we currently only offer a Stocks & Shares ISA, Pension and General Investment Account. We are an investment manager and our primary focus is on providing cost-efficient investment advice with a discretionary service. Find out more on Cash ISA vs Stocks & Shares ISA.