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.
FAQs
Frequently asked questions
Can I have more than one ISA?
Yes. Since 6 April 2024 you can pay into multiple ISAs of the same type in a tax year, within the annual limits, but only one Lifetime ISA.
What happens if I exceed my ISA allowance?
HMRC may require the excess and related gains to be removed from the ISA.
What’s the difference between a Cash ISA and a Stocks and Shares ISA?
A Cash ISA works like a savings account with tax-free interest. A Stocks and Shares ISA invests in markets, so returns can be higher but your money is at risk.