By MoneyWise UK Editorial Team | Last Updated: 25 September 2026 | Savings Accounts
The ISA allowance for 2026/27 is £20,000. It covers 6 April 2026 to 5 April 2027 and can be split across cash, stocks and shares, innovative finance and Lifetime ISAs (up to £4,000 in a Lifetime ISA). Unused allowance does not carry over. From 6 April 2027 the overall allowance stays at £20,000, but under 65s can put no more than £12,000 of it into cash ISAs.
The interactive checker loads here. If it does not appear, add up everything paid into your ISAs since 6 April: the total must stay within £20,000, with no more than £4,000 in a Lifetime ISA.
£20,000 ISA allowance for 2026/27, unused allowance is lost on 5 April 2027
The allowance has been £20,000 since 2017/18 and cannot be carried forward. Source: GOV.UK.
What is the ISA allowance for 2026/27?
The ISA allowance for 2026/27 is £20,000 per adult. It applies to the tax year running from 6 April 2026 to 5 April 2027, and it is the maximum new money you can pay into ISAs in that period. Interest, dividends and investment growth inside an ISA are free of UK income tax and capital gains tax.
The allowance works on a use it or lose it basis. If you pay in £12,000 this tax year, the other £8,000 of allowance disappears on 5 April 2027 and you start again with a fresh allowance on 6 April 2027.
You must be 18 or over and a UK resident to open an adult cash ISA or stocks and shares ISA. Lifetime ISAs can be opened between the ages of 18 and 39. Children have their own Junior ISA allowance of £9,000 for 2026/27, which is separate from the adult allowance.
How you can split your £20,000
Since 6 April 2024 you can pay into more than one ISA of the same type in the same tax year, so the £20,000 can be spread across several providers. The one exception is the Lifetime ISA, where you can only pay into one per tax year. Our guide on how many cash ISAs you can have explains this in more detail.
| ISA type | Limit in 2026/27 | Key points |
|---|---|---|
| Cash ISA | Up to £20,000 | Savings account, interest tax free. FSCS protected up to £120,000 per person per banking licence. |
| Stocks and shares ISA | Up to £20,000 | Investments can fall as well as rise. Growth and dividends tax free. |
| Innovative finance ISA | Up to £20,000 | Peer to peer lending. Higher risk and usually not FSCS protected. |
| Lifetime ISA | Up to £4,000 (counts towards the £20,000) | 25% government bonus. For a first home up to £450,000 or for age 60 onwards. 25% withdrawal charge otherwise. |
| Junior ISA | £9,000 per child | Separate allowance. Money belongs to the child at 18. |
What counts towards the allowance
- Counts: every pound of new money you pay into any adult ISA between 6 April 2026 and 5 April 2027, including Lifetime ISA payments.
- Does not count: interest, dividends and growth earned inside the ISA, and the Lifetime ISA government bonus.
- Does not count: transfers of money paid in during previous tax years, as long as you use the formal ISA transfer process.
- Withdrawals: with a standard ISA, taking money out does not give you the allowance back. With a flexible ISA, you can usually replace money withdrawn in the same tax year without using extra allowance.
A saver pays £20,000 into a flexible cash ISA in April 2026, then withdraws £3,000 in August for a car repair. Because the account is flexible, they can pay the £3,000 back into the same ISA before 5 April 2027 without going over the allowance.
If the account was not flexible, the £3,000 withdrawal would still count as used allowance. Paying it back in would take them to £23,000 of payments, £3,000 over the limit.
Confirmed changes from 6 April 2027
HM Treasury confirmed ISA reforms that start on 6 April 2027, with the details set out in a GOV.UK factsheet published on 23 June 2026. The main points are:
| Change | What it means |
|---|---|
| Overall allowance stays at £20,000 | The total you can pay into ISAs each year does not fall. |
| £12,000 cash ISA limit for under 65s | No more than £12,000 of the £20,000 can go into cash ISAs. The rest can go into stocks and shares, innovative finance or Lifetime ISAs. |
| Over 65s keep £20,000 for cash | Applies from the start of the tax year in which you turn 65. |
| No transfers from stocks and shares ISAs into cash ISAs for under 65s | Stops the cash limit being sidestepped. Transfers from cash into stocks and shares ISAs are still allowed. |
| 22% charge on interest from uninvested cash held in stocks and shares ISAs | Paid by the ISA manager to HMRC. You do not need to declare it. |
| Stocks and shares ISAs cannot hold only money market funds | Partial holdings in money market funds are still allowed. |
Money already inside cash ISAs is not affected. The new limit applies to payments made from 6 April 2027 onwards. You can read the full details in our guide to the cash ISA rule changes.
Why the allowance matters more from 2027
From 6 April 2027, savings interest outside ISAs will be taxed at 22% for basic-rate taxpayers, 42% for higher-rate taxpayers and 47% for additional-rate taxpayers, two percentage points above current rates. The Personal Savings Allowance stays at £1,000 for basic-rate taxpayers, £500 for higher-rate taxpayers and nothing for additional-rate taxpayers.
A higher-rate taxpayer holds £60,000 in an ordinary savings account paying 4% AER, earning £2,400 of interest a year. After the £500 Personal Savings Allowance, £1,900 is taxable. At 40% in 2026/27 the tax bill is £760. At 42% in 2027/28 the same interest would cost £798.
If they move £20,000 of new money into a cash ISA paying the same 4% during 2026/27, £800 of the interest becomes tax free, cutting their taxable interest to £1,100 and saving £320 in tax each year at the 40% rate. Rates here are illustrative; check current rates before choosing an account.
Before paying in, check whether your savings interest is actually taxable. Many basic-rate taxpayers with modest savings pay no tax on interest thanks to the Personal Savings Allowance and, for some, the starting rate for savings. GOV.UK explains how tax on savings interest works, and our tax on savings interest guide has worked figures.
How to use your 2026/27 allowance
- Keep an emergency fund you can reach. An easy access cash ISA or savings account covering a few months of essential costs comes first.
- Check whether a Lifetime ISA fits. If you are 18 to 39 and saving for a first home or retirement, up to £4,000 earns a 25% bonus, but the withdrawal charge applies if you use it for anything else.
- Decide on cash or investments. Money you may need within five years usually suits cash. Longer term money may suit a stocks and shares ISA, accepting that its value can fall.
- Compare providers. For cash ISAs, compare AER, access rules, whether it is flexible and whether it accepts transfers in. For investments, compare platform and fund charges.
- Keep a running total. With several accounts, add up what you pay in so you stay within £20,000 by 5 April 2027.
- Plan for 2027/28. If you are under 65 and save more than £12,000 a year in cash, think about how you will split new savings from 6 April 2027.
MoneyWise UK reviews publicly available UK guidance and trusted sources such as GOV.UK, HMRC, FCA and MoneyHelper. This guide is general information only, not personalised financial advice. Sources checked for this guide:
Some headlines say the ISA allowance is being cut to £12,000. It is not. The overall allowance stays at £20,000 in 2027/28. What changes is that under 65s can only put £12,000 of it into cash ISAs, with the rest available for stocks and shares, innovative finance or Lifetime ISAs.
- The ISA allowance for 2026/27 is £20,000, from 6 April 2026 to 5 April 2027.
- Unused allowance is lost after 5 April 2027 and cannot be carried forward.
- You can split it across several ISAs, including several cash ISAs, but only one Lifetime ISA (up to £4,000).
- Transfers of old ISA money and interest earned inside ISAs do not use the allowance.
- From 6 April 2027 the allowance stays £20,000, but under 65s can only put £12,000 into cash ISAs.
- Savings tax rates rise by two percentage points from April 2027, making ISA shelter more valuable.
Frequently Asked Questions
What is the ISA allowance for 2026/27?
The ISA allowance for 2026/27 is £20,000 per adult. You can pay up to this amount into ISAs between 6 April 2026 and 5 April 2027.
Is the ISA allowance being cut to £12,000?
No. The overall ISA allowance stays at £20,000 from 6 April 2027. The change is that under 65s will only be able to pay up to £12,000 a year into cash ISAs. Over 65s can still put up to £20,000 into cash ISAs.
Can I carry over unused ISA allowance?
No. Any allowance you do not use by 5 April 2027 is lost. You get a fresh £20,000 allowance on 6 April 2027.
Does a Lifetime ISA count towards the £20,000 allowance?
Yes. You can pay up to £4,000 a year into a Lifetime ISA, and that amount counts towards your £20,000 overall allowance. The 25% government bonus does not count.
Will money already in my cash ISA be affected in 2027?
No. The £12,000 cash ISA limit applies to new payments from 6 April 2027. Existing cash ISA balances stay tax free.
When does the ISA allowance reset?
The allowance resets at the start of each tax year on 6 April (see when does the ISA allowance reset). The 2026/27 allowance ends on 5 April 2027 and the 2027/28 allowance starts on 6 April 2027.
MoneyWise UK provides general information only. This is not financial advice. Figures are correct for the 2026/27 tax year as at the date shown and are based on official GOV.UK and HMRC guidance. Investments can fall as well as rise. Consider speaking to a regulated financial adviser before making major financial decisions.
This content is based on publicly available UK financial guidance and trusted sources such as GOV.UK, HMRC, FCA, and MoneyHelper. It is for informational purposes only and not financial advice. Rules and rates may change, so check official sources before making decisions.
