Gareth Hoyle · Founder & Editor
Reviewed May 2026. Independent researcher, not a financial adviser. About Gareth
For the 2026/27 tax year, every UK adult can pay up to £20,000 into ISAs. Everything inside the wrapper grows free of UK income tax and capital gains tax. The allowance resets on 6 April each year and doesn't roll over: use it or lose it.
You can split it across ISA types
You can spread your £20,000 across a cash ISA, a stocks & shares ISA, an Innovative Finance (peer-to-peer) ISA and a Lifetime ISA, in any proportion you like. For example, £10,000 in cash and £10,000 in a stocks & shares ISA. Use our allowance calculator to keep track.
The Lifetime ISA is capped at £4,000
The Lifetime ISA has its own sub-limit: a maximum of £4,000 per year, which counts within the overall £20,000 (not on top of it). The government then adds a 25% bonus on what you pay in.
Transfers don't use up your allowance
Moving money from a previous year's ISA into a new one via the proper transfer process does not count towards this year's £20,000. Only new money you pay in does.
The rules that catch people out
- Never just withdraw and re-pay to "move" an ISA. You'll lose the tax-free status. Always transfer.
- The allowance is per person, not per account. Opening more ISAs doesn't give you more allowance.
- Flexible ISAs let you withdraw and replace money in the same tax year without it counting twice, but not all ISAs are flexible.
Keep reading
ISA allowance calculator
Track how much of your £20,000 ISA allowance you've used across cash, stocks & shares, IFISA and Lifetime ISAs.
Types of ISA explained
The five main types of ISA, how each works, who they suit and how they compare.
How to transfer an ISA
Step-by-step: how ISA transfers work, why you should never just withdraw, and how to avoid losing tax-free status.
End-of-tax-year ISA checklist
What to do before 5 April to make the most of your ISA allowance before it's gone.