What are ISA allowances?
ISAs let UK savers and investors grow their money free of tax. Interest, dividends and capital gains inside an ISA are tax-free, provided contributions stay within the annual limit, which applies across all your ISAs combined. Unused allowance can’t be carried forward.
| Limits | 2026/27 (£) | 2025/26 (£) |
|---|---|---|
| Overall annual investment limit | 20,000 | 20,000 |
| Junior ISA annual investment limit | 9,000 | 9,000 |
| Help to Buy ISA monthly subscription limit | 200 | 200 |
| Lifetime ISA annual investment limit | 4,000 | 4,000 |
Types of ISA
- Lifetime ISA: first payment aged 18 to 39. Up to £4,000 a year until age 50, with a 25% government bonus worth up to £1,000 a year, for a first home or from age 60.
- Help to Buy ISA: closed to new savers on 30 November 2019. Existing holders can pay in up to £200 a month until 30 November 2029 and claim the bonus by 1 December 2030.
- Junior ISA: opened by a parent or guardian for a child under 18, with its own allowance.
Who can use ISA allowances?
- You must be a UK resident for tax purposes to pay into an ISA.
- Cash, Stocks and Shares and Innovative Finance ISAs: aged 18 or over.
- If you move abroad, you can keep existing ISAs but can’t pay in while non-resident.
- You can pay into only one Lifetime ISA in a tax year.
Frequently Asked Questions
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Can I have More than One ISA?
Yes, since 6 April 2024 you can pay into multiple ISAs of the same type in the same tax year, as long as your total contributions stay within the annual limit. For example, you could open two Cash ISAs or two Stocks and Shares ISAs and split your allowance between them. The only exception is the Lifetime ISA, where you can pay into just one in each tax year.
What Happens If I Exceed my ISA Allowance?
If you pay in more than your annual ISA allowance, HMRC may require the excess amount to be removed from the ISA. Any interest, dividends or gains earned on the excess can also be taxed, because they no longer qualify for the tax-free treatment. Your provider will usually contact you to correct this, so it is important to track your total contributions across all accounts.
What’s the Difference Between a Cash ISA and a Stocks and Shares ISA?
A Cash ISA works like a normal savings account, where your money earns interest and that interest is completely tax-free. A Stocks and Shares ISA invests your money in markets such as funds and shares, so returns can potentially be higher over time. However, your money is at risk with a Stocks and Shares ISA, and the value of your investment can go down as well as up.
What is the Annual ISA Allowance?
For 2026/27, you can put up to £20,000 into ISAs in total, which is the same limit as the previous tax year. This limit applies across all your ISAs combined, so adding up your Cash, Stocks and Shares and Lifetime ISA payments is important. Any unused allowance cannot be carried forward, so it is lost once the tax year ends on 5 April.
How Does a Lifetime ISA Work?
A Lifetime ISA is open to UK residents who make their first payment between the ages of 18 and 39. You can pay in up to £4,000 each year until you turn 50, and the government adds a 25% bonus worth up to £1,000 annually. The money can be used towards buying your first home or taken from age 60, and other withdrawals may face a charge.
Can my Child have an ISA?
Yes, a parent or guardian can open a Junior ISA for a child under 18, and it has its own separate annual limit of £9,000. The money belongs to the child and is locked in until they turn 18, so it is a good way to build long-term savings. A child’s Junior ISA allowance does not affect the parent’s own £20,000 allowance in any way.
Can I Keep Paying into my ISA If I Move Abroad?
If you become a non-UK resident for tax purposes, you can keep your existing ISAs open and they will continue to grow tax-free. However, you can no longer pay money into them while you are non-resident, so any new contributions must wait. If you return to the UK and become tax resident again, you can start making payments into your ISAs once more.
Who is Eligible to Open an ISA?
You must be a UK resident for tax purposes to pay into an ISA, and you generally need to be aged 18 or over for Cash, Stocks and Shares and Innovative Finance ISAs. Different age rules apply to other types, such as the Lifetime ISA, which has a 18 to 39 starting age, and the Junior ISA for under-18s. If you are unsure whether you qualify, an accountant can check your residency status and advise you.