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ACCA Applied Skills · Taxation (UK) · The overall function and purpose of taxation in a modern economy

What is the overall investment limit for individual savings accounts (ISAs) that an individual can subscribe in a tax year, as given in the tax tables?

The overall ISA investment limit is £20,000 per tax year. This is the total that may be subscribed across ISAs, and it should not be confused with the £7,500 rent-a-room limit or the £3,000 capital gains tax annual exempt amount.

  1. A£7,500
  2. B£20,000Correct
  3. C£3,000
  4. D£1,000,000

Explanation

The tax tables give an overall ISA investment limit of £20,000 per tax year. £7,500 is the rent-a-room limit, £3,000 is the CGT annual exempt amount, and £1,000,000 is the lifetime limit for business asset disposal relief.

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