ISA allowance 2026/27

Track how much of your £20,000 allowance you have used across cash, stocks & shares and Lifetime ISAs — and understand why this tax year is different from the ones after it.

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Figures reviewed: July 2026, for the 2026/27 tax year. The 2027 change described below was announced in the Autumn Budget 2025. Check current rules at gov.uk/individual-savings-accounts.

This is the last year of the £20,000 cash ISA for under-65s. From 6 April 2027 the cash ISA limit falls to £12,000 a year for anyone under 65. The overall £20,000 allowance stays — the other £8,000 can still go into a stocks & shares ISA — and savers aged 65+ keep the full £20,000 cash limit. If you hold savings in cash and want them sheltered, the 2026/27 allowance matters more than usual, because next year you will not be able to shelter as much of it in cash.

The limits at a glance

Account2026/27 limitNotes
Overall ISA allowance£20,000Across all your ISAs combined
Cash ISA£20,000Falls to £12,000 for under-65s from April 2027
Stocks & shares ISA£20,000Within the overall allowance
Lifetime ISA£4,000Counts toward the £20,000; 25% government bonus
Junior ISA£9,000Separate — does not use your allowance

Three rules people get wrong

1. The allowance does not roll over

It is use-it-or-lose-it. Anything uncontributed by 5 April 2027 is gone. This is why ISA activity spikes every March — and why leaving it to the last week risks missing transfer and processing deadlines.

2. The Lifetime ISA is inside the £20,000, not on top

Put £4,000 into a LISA and you have £16,000 of overall allowance left. The 25% bonus — up to £1,000 a year — makes it the highest guaranteed return available for a first home deposit, but the 25% withdrawal charge for taking money out for anything else (before 60) means you get back less than you put in. It is a commitment, not a savings account.

3. Paying in and then withdrawing still uses allowance

Unless your ISA is a flexible ISA, money you withdraw does not restore your allowance. Deposit £15,000, withdraw £10,000, and you can still only add £5,000 more this year. Flexible ISAs let you replace withdrawals within the same tax year — but not all providers offer them, and it is worth checking before you move money.

Worked example: where £20,000 could go

DestinationAmountWhat you get
Lifetime ISA£4,000+£1,000 government bonus
Cash ISA£8,000Tax-free interest, instant access
Stocks & shares ISA£8,000Tax-free growth and dividends
Total contributed£20,000+£1,000 bonus on top

An illustration of how the sub-limits interact — not a recommendation. The right split depends on your goals, timescale and appetite for risk.

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Common questions

What is the ISA allowance for 2026/27?

£20,000 across all your ISAs combined, for contributions between 6 April 2026 and 5 April 2027.

What changes in April 2027?

The cash ISA limit for under-65s falls to £12,000. The overall £20,000 stays, with the balance available for stocks & shares. Savers 65 and over keep the full £20,000 cash limit.

Is ISA interest really tax-free?

Yes — interest, dividends and gains inside an ISA are free of UK income tax and capital gains tax, and do not use up your personal savings allowance.

Is this financial advice?

No. It explains the rules and helps you track your own numbers. Whether cash or investments are right for you depends on your circumstances — free impartial guidance is available from MoneyHelper.

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