What is the annual ISA allowance per year in the UK?

The annual ISA (Individual Savings Account) allowance in the UK is indeed £20,000. This is the amount that an individual can invest in ISAs in a tax year, allowing them to benefit from tax-free growth and tax-free withdrawals on their investments. The allowance covers various types of ISAs, including cash ISAs, stocks and shares ISAs, innovative finance ISAs, and lifetime ISAs, although there are specific limits on how much can be invested in each type.

This allowance is set annually by the government, and it represents a significant opportunity for individuals to save and invest without incurring tax liabilities on the income or capital gains generated within the ISA. The figure of £20,000 has been stable for several years, providing clarity and predictability for savers and investors planning their finances.

Other amounts listed do not reflect the current ISA allowance and would not offer the same level of tax efficiency that the full allowance does, making the choice of £20,000 the only accurate figure specified for the current ISA savings year.