ISA & Savings Calculators 2026/27

ISA allowances in 2026/27

The overall ISA subscription limit remains £20,000 per tax year for 2026/27. You can split this across any combination of Cash ISA, Stocks & Shares ISA, Innovative Finance ISA and Lifetime ISA, though contributions to a LISA (up to £4,000) count towards the £20,000 cap. Junior ISAs have a separate allowance of £9,000 per child.

ISAs are free from income tax and capital gains tax on the growth inside them, making them one of the most tax-efficient savings vehicles available. Unused allowance cannot be carried forward; each allowance resets on 6 April.

Types of ISA compared

The Lifetime ISA bonus

The Lifetime ISA is particularly powerful for first-time buyers and those saving for retirement: the government adds a 25% bonus on up to £4,000 per year, meaning up to £1,000 free annually. Open one between ages 18 and 39; contribute until 50. For a first home the property must cost £450,000 or less.

The 25% withdrawal penalty (which claws back the bonus plus a portion of your own savings) applies if you withdraw for any reason other than buying a first home, turning 60, or terminal illness. Plan carefully before opening a LISA if you might need the money for other purposes.

Making the most of your ISA allowance

The most important rule is simple: use it or lose it. Unlike pensions, there is no carry-forward, unused allowance disappears on 5 April each year. Contributing early in the tax year maximises the time your money benefits from tax-free growth.

If you hold both a Cash ISA and a Stocks & Shares ISA, consider moving long-term savings into equities for higher growth potential. Cash ISAs are best for money you may need within five years; Stocks & Shares ISAs suit a longer time horizon of five-plus years to ride out market volatility.

For higher earners who have already used their pension annual allowance, a Stocks & Shares ISA is the next most tax-efficient vehicle, no income tax on dividends, no CGT on gains, and withdrawals at any age with no restrictions.

Junior ISA: saving for children

Children under 18 who don't have a Child Trust Fund can hold a Junior ISA (JISA). The 2026/27 JISA allowance is £9,000 per child per tax year, completely separate from the adult £20,000 allowance. Parents, grandparents, or anyone else can contribute, but only the child can withdraw the money — and only once they turn 18.

Investing a full £9,000 per year from birth at 7% average annual growth would produce over £300,000 by age 18 — entirely tax-free. Even modest monthly contributions add up significantly over an 18-year horizon, thanks to compounding and the tax-free wrapper.

ISA transfers: switching without losing your wrapper

You can move ISA savings between providers at any time without losing your tax-free status, as long as you use a formal ISA transfer rather than withdrawing the cash yourself. Contact your new provider with a transfer request — they'll handle everything with your existing provider. Current-year contributions must be transferred in full; previous years' savings can be transferred in part.

Transfers are free to request, though some providers charge an exit fee. Cash ISA transfers complete within 15 working days by law. Stocks & Shares ISA transfers take longer — often 3–6 weeks — especially if the new provider needs to sell and re-buy holdings rather than transfer them in-specie.