ISA allowance and rules for 2026/27
£20,000 a year, four account types, and a handful of rules that catch people out every April.
The ISA rules changed meaningfully in April 2024, and a lot of advice still floating around online is out of date. Here is where things stand for the current tax year.
The essentials for 2026/27
- Annual allowance: £20,000 across all your adult ISAs combined.
- Tax year: 6 April 2026 to 5 April 2027.
- Unused allowance does not carry over. On 6 April it resets to £20,000 and last year's unused portion is gone.
- Junior ISA: £9,000 per child, separate from your own allowance.
The four main ISA types
| Type | What it holds | Who it's for |
|---|---|---|
| Cash ISA | Cash, paying interest | Short-term savings |
| Stocks & Shares ISA | Funds, ETFs, shares | Long-term investing |
| Lifetime ISA | Cash or investments | Ages 18–39, first home or retirement |
| Innovative Finance ISA | Peer-to-peer loans | Higher risk, niche |
The Lifetime ISA bonus — and its catch
The Lifetime ISA (LISA) is the most generous and the most restrictive. You can pay in up to £4,000 a year, and the government adds a 25% bonus — up to £1,000 free per year. That £4,000 counts towards your overall £20,000 allowance.
The catch: you can only open one between the ages of 18 and 39, and you can withdraw penalty-free only to buy a first home (up to a property price cap) or from age 60. Withdraw for any other reason and a government charge applies that can leave you with less than you put in. It is excellent money for the exact purposes it was designed for, and an expensive trap otherwise.
The rule that changed in 2024
You used to be restricted to paying into one ISA of each type per tax year. That restriction was lifted: you can now open and pay into multiple ISAs of the same type within a single tax year, provided you stay inside the £20,000 total. In practice this means you can chase a better cash ISA rate mid-year without waiting for April.
See what £20,000 a year becomes
The allowance is a limit, not a target — but if you can use a meaningful part of it consistently, the compounding is worth seeing in numbers.
Open the ISA calculator →Transfers: the mistake that costs allowance
If you want to move an existing ISA to a better provider, never withdraw the money and pay it back in yourself. That counts as a fresh contribution and eats into this year's £20,000. Instead, open the account with the new provider and use their official ISA transfer form — the money moves between providers and keeps its tax-free status without touching your allowance.
Money from previous tax years can be transferred in full or in part. Money paid in during the current tax year usually has to be transferred in full if you move it.
Flexible ISAs
Some cash ISAs are "flexible", meaning you can withdraw money and pay it back in the same tax year without it counting again towards your allowance. Not all providers offer this and it is rarely offered on stocks and shares ISAs. It is worth checking before you withdraw, because on a non-flexible ISA that money is gone from your allowance permanently.
Common questions
What is the ISA allowance for 2026/27?
£20,000 per adult, across all ISA types combined. The Junior ISA allowance is £9,000 per child and is separate.
Can I pay into two Cash ISAs in the same year?
Yes. Since April 2024 you can pay into multiple ISAs of the same type in one tax year, as long as your combined contributions stay within £20,000.
Does my ISA allowance roll over if I don't use it?
No. It resets each 6 April and any unused portion is lost permanently.
Do I need to declare my ISA on a tax return?
No. Income and gains inside an ISA are free of UK income tax and capital gains tax and do not need to be reported on a self-assessment return.