Savings & Investing
ISA Allowance 2026-27 — What You Can Save Tax-Free
ISA allowance for 2026-27 tax year. How much you can put into Cash ISAs, Stocks and Shares ISAs, and Lifetime ISAs. Rules for splitting allowances and transferring between providers.
ISAs let you save and invest tax-free. Here’s everything about the ISA allowance for 2026-27 and how to make the most of it.
ISA Allowance for 2026-27
| Tax Year |
ISA Allowance |
| 2026-27 |
£20,000 |
| 2025-26 |
£20,000 |
| 2024-25 |
£20,000 |
| 2023-24 |
£20,000 |
The allowance has been frozen at £20,000 since 2017-18.
Types of ISA and Their Limits
| ISA Type |
2026-27 Limit |
Notes |
| Cash ISA |
Part of £20,000 |
Flexible splitting |
| Stocks and Shares ISA |
Part of £20,000 |
Flexible splitting |
| Innovative Finance ISA |
Part of £20,000 |
Peer-to-peer lending |
| Lifetime ISA |
£4,000 max |
Counts towards £20,000 |
| Total across all |
£20,000 |
Combined maximum |
How the £20,000 Allowance Works
You Can Split It Any Way
| Example Allocation |
Cash ISA |
S&S ISA |
LISA |
Total |
| All cash |
£20,000 |
£0 |
£0 |
£20,000 |
| All investing |
£0 |
£20,000 |
£0 |
£20,000 |
| Split evenly |
£10,000 |
£10,000 |
£0 |
£20,000 |
| With LISA |
£6,000 |
£10,000 |
£4,000 |
£20,000 |
| Maxing LISA |
£0 |
£16,000 |
£4,000 |
£20,000 |
Lifetime ISA Special Rule
| LISA Rule |
Detail |
| Maximum LISA contribution |
£4,000 per year |
| Counts towards ISA allowance |
Yes |
| Age limit |
18-39 to open, contribute until 50 |
| Government bonus |
25% (up to £1,000) |
Example: If you put £4,000 in a LISA, you can put £16,000 in other ISAs.
Multiple ISAs of Same Type (2024 Rules)
Before April 2024, you could only pay into one ISA of each type per tax year. Now:
| Rule |
Before April 2024 |
From April 2024 |
| Cash ISAs |
1 per year |
Multiple allowed |
| S&S ISAs |
1 per year |
Multiple allowed |
| IFISAs |
1 per year |
Multiple allowed |
| Total limit |
£20,000 |
Still £20,000 |
This means: You can open a Cash ISA with Bank A and another with Bank B in the same year.
Tax Benefits of ISAs
What’s Tax-Free
| Income/Gain Type |
In ISA |
Outside ISA |
| Interest |
Tax-free |
PSA then taxed |
| Dividends |
Tax-free |
£500 allowance then taxed |
| Capital gains |
Tax-free |
£3,000 allowance then taxed |
Value of Tax-Free Growth
| Tax Band |
Interest Tax Rate |
S&S Dividend Rate |
S&S CGT Rate |
| Basic rate |
20% |
8.75% |
18% |
| Higher rate |
40% |
33.75% |
24% |
| Additional rate |
45% |
39.35% |
24% |
An ISA shields all growth from these taxes.
Making the Most of Your Allowance
Priority Order (for most people)
| Priority |
Action |
Reason |
| 1 |
Workplace pension (to employer match) |
Free money |
| 2 |
Emergency fund (often Cash ISA) |
Security |
| 3 |
LISA (if saving for house/retirement) |
25% bonus |
| 4 |
S&S ISA for long-term |
Growth potential |
| 5 |
Additional pension contributions |
Tax relief |
By Time Horizon
| Goal Timeframe |
Suggested ISA Type |
| Under 1 year |
Easy-access Cash ISA |
| 1-3 years |
Fixed-rate Cash ISA or cautious funds |
| 3-5 years |
Mixed Cash/S&S ISA |
| 5+ years |
Stocks and Shares ISA |
| First home/retirement |
Lifetime ISA |
Annual Allowance Timeline
Key Dates 2026-27
| Date |
Significance |
| 6 April 2026 |
New tax year starts — fresh £20,000 |
| 5 April 2027 |
Last day to use 2026-27 allowance |
| 6 April 2027 |
Unused 2026-27 allowance lost |
Don’t Leave It Too Late
| Timing |
Risk |
| Early April |
Provider systems may be busy |
| End of March |
Risk of not processing in time |
| Regular monthly |
Pound cost averaging benefit |
Transferring ISAs
Transfer Rules
| Transfer Type |
Allowed? |
Notes |
| Cash ISA → Cash ISA |
Yes |
Keep tax-free status |
| Cash ISA → S&S ISA |
Yes |
Keep tax-free status |
| S&S ISA → Cash ISA |
Yes |
May trigger selling fees |
| This year’s ISA |
Must transfer all |
Partial not allowed |
| Previous years’ ISAs |
Partial allowed |
More flexibility |
Transfer vs Withdraw
| Method |
Result |
| Transfer |
Keeps tax-free status |
| Withdraw and reopen |
Uses this year’s allowance |
Always transfer — don’t withdraw and re-deposit.
Flexible ISAs
What’s a Flexible ISA?
| Feature |
Flexible ISA |
Standard ISA |
| Withdraw and replace |
Yes (same tax year) |
No |
| Timing |
Must replace before 5 April |
N/A |
| Limits |
Only up to withdrawn amount |
Uses new allowance |
Example: Flexible ISA
| Action |
Standard ISA |
Flexible ISA |
| Start with £20,000 used |
Cannot add more |
Cannot add more |
| Withdraw £3,000 |
Allowance still used |
Can replace £3,000 |
| Re-deposit £3,000 |
Would breach limit |
Allowed |
Not all ISAs are flexible — check with your provider.
Junior ISA (JISA) Allowance
Separate from Adult ISA
| Detail |
Amount |
| 2026-27 JISA allowance |
£9,000 |
| Who can contribute |
Parents, grandparents, anyone |
| Child’s age |
Under 18 |
| Converts to adult ISA |
At 18 |
JISA Types
| Type |
Available |
| Cash JISA |
Yes |
| Stocks and Shares JISA |
Yes |
| LISA |
No — age 18+ |
| Split between types |
Yes |
ISA Allowance for Different Life Stages
Early Career (20s-30s)
| Priority |
Allocation |
| Emergency fund |
£5,000 Cash ISA |
| House deposit |
£4,000 LISA |
| Long-term investing |
£11,000 S&S ISA |
Mid-Career (30s-40s)
| Priority |
Allocation |
| Emergency fund top-up |
£2,000 Cash ISA |
| Long-term investing |
£14,000 S&S ISA |
| LISA (if eligible) |
£4,000 LISA |
Approaching Retirement (50s-60s)
| Priority |
Allocation |
| Cautious funds |
£12,000 S&S ISA |
| Cash buffer |
£8,000 Cash ISA |
In Retirement
| Priority |
Allocation |
| Income generating |
£15,000 S&S ISA |
| Accessible cash |
£5,000 Cash ISA |
Common Questions
Can I Have Multiple ISAs?
| Scenario |
Answer |
| Same type, same provider |
Yes (from 2024) |
| Same type, different providers |
Yes (from 2024) |
| Different types |
Always been allowed |
| Multiple LISAs |
No — still 1 only |
What Happens If I Exceed £20,000?
| Issue |
Outcome |
| Provider accepts excess |
HMRC flags it |
| HMRC contacts provider |
Excess voided |
| Your money |
Returned to you |
| Tax on excess growth |
You may owe tax |
Can I Open an ISA for My Partner?
| Scenario |
Allowed? |
| Open ISA in their name |
No |
| Contribute to their ISA |
Yes (if they share details) |
| Transfer your ISA to them |
No |
| Each have own £20,000 |
Yes — separate allowances |
Couples tip: Together you have £40,000 ISA allowance.
Maximizing Family Allowances
Combined Family Allowances
| Family Member |
Allowance |
| Adult 1 |
£20,000 |
| Adult 2 |
£20,000 |
| Child 1 |
£9,000 (JISA) |
| Child 2 |
£9,000 (JISA) |
| Family total |
£58,000 |
Strategy: Gift to Children
| Approach |
Detail |
| Parents fund JISA |
Uses JISA allowance |
| Grandparents fund JISA |
Also uses child’s JISA |
| Total JISA limit |
£9,000 regardless of who contributes |
ISA vs Pension
Key Differences
| Factor |
ISA |
Pension |
| Tax relief on contributions |
None |
Up to 45% |
| Growth |
Tax-free |
Tax-free |
| Access |
Anytime (except LISA) |
From 55 (rising to 57) |
| Withdrawal tax |
None |
75% taxed as income |
| Inheritance |
Outside estate |
Usually tax-free |
| Annual limit |
£20,000 |
£60,000 (or earnings) |
When to Prioritize ISA
| Situation |
Why ISA |
| Need flexibility |
Access anytime |
| Already maxed pension employer match |
ISA next |
| Higher/additional rate taxpayer |
Tax-free growth helps |
| Want to retire early |
Access before 55 |
When to Prioritize Pension
| Situation |
Why Pension |
| Employer matches contributions |
Free money |
| Basic rate taxpayer |
25% boost from relief |
| Long time until retirement |
Maximum growth time |
| Worried about spending savings |
Locked away |
Track Your ISA Contributions
Record Keeping
| Track |
Detail |
| Provider 1 contributions |
|
| Provider 2 contributions |
|
| Total this tax year |
|
| Remaining allowance |
|
Most Providers Show
| Feature |
Usually Available |
| This year’s contributions |
Yes |
| Total ISA value |
Yes |
| Allowance remaining |
Yes |
| Historical contributions |
Often |