ACCA Applied Skills · Taxation (UK) · The overall function and purpose of taxation in a modern economy
Chloe invests £14,000 in ISAs this tax year. Using the overall ISA limit in the TX-UK tax tables (Finance Act 2025), how much more can she invest in ISAs this year?
Chloe can invest a further £6,000 in ISAs. The overall ISA limit is £20,000, and after her £14,000 investment the remaining allowance is £20,000 less £14,000, which is £6,000.
- A£6,000Correct
- B£7,500
- C£5,000
- D£1,500
Explanation
The overall limit is £20,000. Remaining allowance is £20,000 − £14,000 = £6,000. Using £7,500 (the rent-a-room limit) would give £-6,500, which makes no sense, so it is wrong.
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