Published: 14 January 2024
Last updated: 13 May 2026
What’s an ISA allowance?
Each tax year the Government states how much can be saved or invested tax free in an ISA. This is the ISA allowance.
You can split your allowance across different types of ISAs, such as cash ISAs, stocks and shares ISAs, innovative finance ISAs and lifetime ISAs. Each type of ISA caters to different financial needs and goals. One thing they all have in common is that you don’t have to pay tax on the interest or growth that you earn in them.
What is the ISA allowance for 2026/2027?
The ISA allowance for the 2026/2027 tax year is £20,000. As mentioned above, you can use this across multiple ISAs.
If you’re considering a cash ISA in the future, from 6 April 2027 there’s a change you need to know about. The ISA allowance remains at £20,000 but if you’re aged under 65, the amount you could save in a cash ISA each tax year will reduce to £12,000.
But savers aged 65 and over aren’t affected – they’ll still be able to save their full £20,000 allowance in a cash ISA.
When does your ISA allowance reset?
The ISA allowance lasts for a full tax year, starting from 6 April one year and ending on 5 April the next year. Each tax year, you get a fresh ISA allowance. If you don’t use it all by the end of the tax year, you can’t carry it over – so if you don’t use it, you'll lose it!
Will transferring an ISA use your allowance?
Worried about moving your ISA savings around? Don’t be.
Shifting your money from one ISA to another doesn’t use up any of your yearly allowance, as long as it’s done as an official ISA transfer.
But be aware, if you take the money out and then put it back into an ISA, it will count towards your limit (unless you have an ISA that offers flexible withdrawals so you can replace the amount withdrawn without using additional allowance). Check with your provider for any restrictions they may have on transferring ISAs.
Read more about ISA transfers >
How many ISAs are you allowed?
You can open multiple types of ISA every tax year – so cash ISAs, stocks and shares ISAs, and so on. But remember, all your ISA savings added together shouldn’t go over your annual ISA allowance of £20,000.
However, you can only open one lifetime ISA, which has a £4,000 annual contribution limit and is only available to people aged 18 to 39.
What happens if you go over your ISA allowance?
If you go over your annual ISA limit, HMRC will get in touch and tell you what you need to do. You might have to take out the extra money, pay tax on the amount you’ve gone over or do something else to fix the problem.
ISAs are a great way to save some cash without having to pay any tax. Just keep an eye on how much of the ISA allowance you've used, and you’re good to go!
ISAs are available to individuals aged 18 or over who are resident in the UK for tax purposes.
The tax treatment depends on the individual circumstances of each customer and may be subject to change.
This guide is not to be taken as advice. You should seek independent financial or legal advice if needed.
