You can put up to £20,000 into ISAs in the 2026/27 tax year, split however you like between cash ISAs, stocks and shares ISAs and innovative finance ISAs, with up to £4,000 of that total going into a Lifetime ISA. A Junior ISA has its own separate allowance of £9,000 per child. Interest, dividends and gains inside an ISA are free of tax and never need to be reported. The limits reset on 6 April, cannot be carried forward, and are the reason ISAs remain the first place most people put savings that would otherwise be taxed.
The allowances
| ISA | 2026/27 limit | Who can pay in |
|---|---|---|
| Overall adult allowance | £20,000 | UK residents aged 18 or over |
| Cash ISA | within the £20,000 | aged 18 or over |
| Stocks and shares ISA | within the £20,000 | aged 18 or over |
| Innovative finance ISA | within the £20,000 | aged 18 or over |
| Lifetime ISA | £4,000, counting towards the £20,000 | opened between 18 and 39, contributions until 50 |
| Junior ISA | £9,000, separate from the adult allowance | for a child under 18, opened by a parent or guardian |
The £20,000 covers money paid in during the tax year, not the balance. Transfers between ISAs do not use any allowance, and money withdrawn from a flexible ISA can be replaced in the same tax year without counting again. Since April 2024 you can pay into more than one ISA of the same type in a year, so the allowance can be spread across several cash ISAs to chase the best rate.
Why the allowance matters: tax outside an ISA
Outside an ISA, savings interest is covered by the Personal Savings Allowance of £1,000 a year for a basic rate taxpayer, £500 for a higher rate taxpayer and nothing for an additional rate taxpayer, with interest above that taxed at your marginal rate. At a 4% interest rate the basic rate allowance is used up by £25,000 of savings and the higher rate allowance by £12,500. Dividends outside an ISA have a £500 allowance and are then taxed at 10.75%, 35.75% or 39.35%, and gains above £3,000 a year are taxed at 18% or 24%. Inside an ISA none of these apply. The compound interest calculator shows how much interest a balance produces and whether it would breach the Personal Savings Allowance, and our dividend tax and capital gains tax guides cover the other two.
The Lifetime ISA bonus
A Lifetime ISA adds a 25% government bonus to whatever is paid in, up to £1,000 a year on the £4,000 maximum. The money can be used for a first home costing up to £450,000, with the account open for at least twelve months, or withdrawn from age 60; any other withdrawal carries a 25% charge that takes back the bonus and a little more. The Lifetime ISA calculator shows how a deposit builds with the bonus and what the charge costs on an early withdrawal. The £4,000 counts towards the overall £20,000, leaving £16,000 for other ISAs in a year when the LISA is filled.
Junior ISAs
A Junior ISA takes up to £9,000 a year per child in cash or stocks and shares, held in the child’s name and locked until they turn 18, when it converts to an adult ISA. The money belongs to the child, and the allowance is separate from any adult’s £20,000. Paying the full £9,000 every year from birth, with 5% growth, produces a pot of around £260,000 at 18; the Junior ISA calculator runs any contribution and growth rate.
ISA or pension
A pension attracts tax relief on the way in and is taxed on the way out, with 25% normally tax free; an ISA is paid from taxed income and is tax free on the way out, with no restriction on when the money can be taken. For most employees the workplace pension with its employer contribution comes first, then the ISA for money that may be needed before the pension can be accessed. The pension versus ISA calculator compares the two on the same contribution for your tax rate, and the savings goal calculator shows how long a target takes inside the allowance.
Common questions
What is the ISA allowance for 2026/27? £20,000 in total across cash, stocks and shares and innovative finance ISAs, including up to £4,000 in a Lifetime ISA. A Junior ISA has a separate £9,000 limit.
Can I have more than one ISA? Yes. You can pay into several ISAs of the same or different types in a year, as long as the total paid in stays within £20,000.
Does the allowance carry forward? No. Unused allowance is lost on 5 April. Transfers of existing ISA money between providers do not use the new year’s allowance.
Is ISA interest taxed? No. Interest, dividends and capital gains inside any ISA are tax free and do not need to go on a tax return.
How much is the Lifetime ISA bonus? 25% of what you pay in, up to £1,000 a year on the £4,000 maximum, for a first home up to £450,000 or from age 60.
What is the Junior ISA limit? £9,000 per child in 2026/27, separate from the parents’ own allowances, with the money locked until the child is 18.
Information, not financial advice. Limits are the published 2026/27 figures on gov.uk: Individual Savings Accounts; projections are illustrations at stated growth rates. Check the rules with your provider before acting on them.