The Government has announced there will be changes to ISA allowances

Financial journalist Martin Lewis has shed light on how ISA allowances work for the tax-free savings pots . Brits can currently stash away up to £20,000 annually into ISA accounts, with the flexibility to divide this sum between cash ISAs and stocks and shares ISAs.

A major perk of ISAs is that all interest earned or investment gains within these accounts remain completely tax-free, provided you don't exceed your annual limit. A listener contacted his BBC podcast to ask how the yearly thresholds work.

They posed a theoretical case where someone puts away the full £20,000 in one tax year, then deposits another maximum £20,000 on day one of the new tax year. The query was whether the initial £20,000 would face ta

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