What is the ISA allowance for 2026-27?

The ISA allowance for the 2026-27 tax year (6 April 2026 to 5 April 2027) is £20,000. This is the maximum you can put into ISAs across all types combined. The allowance has been frozen at £20,000 since 2017-18.

Can I split my ISA allowance between different ISAs?

Yes, you can split your £20,000 ISA allowance between different types of ISAs — Cash ISA, Stocks and Shares ISA, Innovative Finance ISA, and Lifetime ISA (up to £4,000). From 2024, you can also pay into multiple ISAs of the same type with different providers in the same tax year.

Does my ISA allowance carry over if I don't use it?

No, the ISA allowance is use it or lose it. If you don't use your full £20,000 allowance in the tax year, the unused portion doesn't carry over to the next year. Each tax year you get a fresh £20,000 allowance.

Do I get a tax bill if I go over my ISA allowance?

If you exceed your ISA allowance, HMRC will contact your ISA provider to correct it. The excess amount will be invalid and returned to you. Any growth or interest on the excess isn't tax-free. You don't get a direct tax bill, but you lose the tax benefit on the excess.

ISA Allowance 2026-27 — What You Can Save Tax-Free | PocketWise

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

ISAs UK: Cash, Stocks & Shares, Lifetime, Junior and Transfer Rules

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