ISAs/ Junior ISAs

An ISA (Individual Savings Account) lets you save or invest without paying UK tax on the interest, dividends or gains. That makes ISAs especially useful for higher-rate taxpayers.

Who can open one
ISAs are open to UK-resident adults aged 18 or over. Crown servants (such as those in the armed forces, diplomatic service or overseas civil service) and their spouses or civil partners can also open one if they live abroad. An ISA must be in your own name, so you can’t hold one jointly or on someone else’s behalf.

How much you can pay in
The overall adult allowance is £20,000 for the 2026/27 tax year (6 April 2026 to 5 April 2027), and you can split it across different types of ISA. You can choose between a cash ISA, a stocks and shares ISA, an Innovative Finance ISA and a Lifetime ISA. Lifetime ISA contributions are capped at £4,000 a year and count towards the £20,000 total. Any unused allowance doesn’t roll over to the next year. nsandi

What’s changing in April 2027
From 6 April 2027, savers under 65 will be limited to £12,000 a year in cash ISAs, while the overall limit stays at £20,000. The other £8,000 can go into a stocks and shares ISA. The change only applies to new deposits and won’t affect money already in a cash ISA. The overall allowance is expected to stay frozen at £20,000 until April 2031. Cash ISA Allowance Change from April 2027 +2

Flexibility you now have

• Multiple providers: You can pay into the same type of ISA with different providers in the same tax year, which makes it easier to chase better rates or mix easy-access and fixed-rate accounts.
• Partial transfers: You choose how much of your current-year ISA to move, rather than all or nothing.
• No re-applying: You no longer need to reapply if you skip a tax year without paying in.

Moving your ISA
Always ask your new provider to handle the transfer. If you withdraw the money and re-deposit it yourself, it loses its tax-free status. Transferring doesn’t use up your current-year allowance.

Junior ISAs
Children under 18 who live in the UK can have a Junior ISA, either cash or stocks and shares, or both. The Junior ISA limit is £9,000 for 2026/27. A parent or guardian opens the account and anyone can pay in, but the money belongs to the child and can only be withdrawn at 18, apart from in cases of terminal illness or death. At 18 it becomes an adult ISA automatically.