An Individual Savings Account (ISA) is a tax efficient way to save funds as there are no tax or capital gains on income/gains generated within the ISA wrapper: tax benefits which are available to all UK tax residents.
You can save up to £20,000 per year, this is the maximum amount you can pay into an ISA between 6 April 2020 and 5 April 2021. If you don’t use your annual ISA allowance before the end of each tax year, you\\'ll lose it.
The annual limit for contributions into a Junior ISAs is £9,000 (for 2020/21). Parents can pay into the Junior ISA up to the limit and what they pay in does not come out of their own £20,000 ISA allowance, as the Junior ISA belongs to the child.
For example, if you have only paid in £10,000 in your ISA in the 2020/21 financial year, you could still top it up by another £10,000 without being taxed.