The ISA allowance in 2026/27: four types of ISA, one £20,000 limit
Published · 3 min read · Figures checked . UK rules and rates change, so check the official sources below before you act.
An explanation of how the yearly ISA allowance works in the 2026/27 tax year, the four types of ISA, who can open one, how the Lifetime ISA fits in, and how moving an ISA works.
What an ISA is
An Individual Savings Account, or ISA, is a way to save or invest where you do not pay tax on the interest, income or gains. You also do not need to list that money on a tax return. ISAs are offered by approved providers.
The yearly limit
In the 2026/27 tax year, which runs from 6 April 2026 to 5 April 2027, the most you can save across all your ISAs is £20,000. This is one shared limit. It does not matter how many accounts you have or which types they are. What counts is the total paid in during the tax year.
GOV.UK gives examples of how the limit can be shared. Someone could pay £15,000 into a cash ISA, £2,000 into a stocks and shares ISA and £3,000 into an innovative finance ISA in one tax year. That adds up to the full £20,000.
The four types
- Cash ISA: savings that earn interest.
- Stocks and shares ISA: money put into investments, whose value can go down as well as up.
- Innovative finance ISA: another ISA type, with its own rules and risks; ask a provider for details.
- Lifetime ISA: a special account with its own rules, explained below.
The Lifetime ISA
A Lifetime ISA must be opened before you turn 40. You can pay in up to £4,000 in a tax year, and that counts towards the £20,000 limit. The government adds a 25% bonus on what you save, up to £1,000 a year. You can keep paying in until you turn 50. After that the account stays open and your money can still earn interest or investment returns, but you cannot add more or earn the bonus. GOV.UK says you can only pay into one Lifetime ISA in a tax year.
Who can open an ISA
- You must be 18 or over for the standard ISAs described here.
- You must live in the UK, or be a member of the armed forces or a Crown servant (or the spouse or civil partner of one).
- You cannot hold an ISA jointly with someone else. Each person has their own allowance.
This guide is general information for adults. It does not cover Junior ISAs for children, and it does not cover people who are not UK residents and do not meet the rules above.
Moving an ISA
You can move all or part of your ISA savings to a different provider. GOV.UK explains that if you take the money out yourself instead of asking the new provider to arrange the transfer, you cannot put that part back in later and use up your tax-free allowance again. Transfers of cash ISAs can take up to 15 working days, and other types up to 30 calendar days. Providers may have their own rules or fees, so it can be worth asking them first. If a transfer is delayed and the provider does not resolve it, the Financial Ombudsman Service can look at complaints.
Check before you act
Allowances and rules can change from one tax year to the next. Please confirm the current figures and conditions on the official pages linked below before making any decision, and ask your provider about its own terms.
Sources
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