The ISA allowance for 2027/28 is £20,000 — reset on 6 April 2027 for the new tax year.
Last reviewed: May 2026. The ISA allowance is confirmed at £20,000 for 2027/28. Any changes will be updated if announced.
ISA Allowances — 2027/28
| ISA type | Allowance | Notes |
|---|---|---|
| Cash ISA | Up to £20,000 total | Can hold multiple Cash ISAs from April 2024 |
| Stocks & Shares ISA | Up to £20,000 total | Shares, funds, ETFs |
| Innovative Finance ISA | Up to £20,000 total | P2P lending — higher risk |
| Lifetime ISA | £4,000 (within £20,000) | Age 18–49; 25% government bonus |
| Junior ISA | £9,000 (separate) | Per child; separate from adult allowance |
Total per adult: £20,000 / year
ISA Allowance History
| Tax year | ISA allowance | Junior ISA |
|---|---|---|
| 2016/17 | £15,240 | £4,080 |
| 2017/18 | £20,000 | £4,128 |
| 2018/19 – 2023/24 | £20,000 | £9,000 |
| 2024/25 – 2026/27 | £20,000 | £9,000 |
| 2027/28 | £20,000 | £9,000 |
How to Use the 2027/28 ISA Allowance
Priority order for most people:
- Emergency fund first — 3–6 months’ expenses in easy-access Cash ISA
- LISA (if under 40 and saving for first home or retirement) — £4,000 for £1,000 bonus
- Workplace pension to get employer match — higher priority than ISA
- Stocks and Shares ISA — long-term investment (5+ years)
- Cash ISA — short/medium-term savings
Couples: Double the Allowance
Married couples and civil partners each have a £20,000 ISA allowance — £40,000/household per year.
Flexible ISAs
Some Cash ISAs are flexible ISAs — these allow you to withdraw money and replace it in the same tax year without using more of your allowance. For example, if you put £20,000 into a flexible ISA, then withdraw £5,000, you can re-deposit that £5,000 in the same tax year without it counting against your £20,000 limit again.
Not all ISAs are flexible — check with your provider. Stocks and Shares ISAs are rarely flexible. If flexibility is important, choose a provider that explicitly offers a flexible Cash ISA.
ISA Inheritance Rules (Additional Permitted Subscription)
When a spouse or civil partner dies, the surviving partner can inherit the value of their ISA through an Additional Permitted Subscription (APS). This allows the survivor to contribute up to the value of the deceased’s ISA into their own ISA, on top of their normal £20,000 annual allowance. The APS must be used within 3 years of the date of death (or 180 days after estate administration completes, if later).
Lifetime ISA — Rules and Penalty
The LISA (Lifetime ISA) attracts a 25% government bonus on up to £4,000 per year. However, withdrawing funds for any reason other than a qualifying first home purchase (property price ≤ £450,000) or retirement (age 60+), or terminal illness, incurs a 25% withdrawal penalty — which effectively claws back the bonus and takes a small portion of your own money as a result. Do not use a LISA as a general emergency fund.
| Annual LISA contribution | Government bonus (25%) | Total in LISA |
|---|---|---|
| £1,000 | £250 | £1,250 |
| £2,000 | £500 | £2,500 |
| £4,000 (maximum) | £1,000 | £5,000 |
What Happens to an ISA if You Move Abroad
If you move abroad, you cannot open new ISAs or add to existing ISAs after the tax year you leave. However, your existing ISA balances continue to grow tax-free indefinitely under UK rules. When you return to the UK, you can start contributing again.