What is the UK ISA Allowance for 2026/27?
The annual UK ISA limit for 2026/27 is £20,000 per adult. Any interest earned in Cash ISAs, dividend distributions, or capital gains made within Stocks & Shares ISAs are 100% exempt from UK income and capital gains taxes.
| ISA Account Type | 2026/27 Annual Limit | Key Statutory Rules |
|---|---|---|
| Adult ISA Allowance (Overall) | £20,000 | Split across Cash, Stocks & Shares, and Innovative Finance |
| Lifetime ISA (LISA) | £4,000 | 25% government bonus (up to £1,000/yr) for first home or retirement |
| Junior ISA (JISA) | £9,000 | Tax-free savings for children under 18 |
Step-by-Step Lifetime ISA Bonus Calculations (Worked Examples)
The mathematical breakdown below illustrates how the 25% LISA government top-up works, alongside the mathematical penalty incurred on unapproved early withdrawals.
Max Annual Contribution & Bonus
Standard £4,000 annual LISA deposit.
Unauthorized Withdrawal Penalty Trap
Withdrawing for reasons other than 1st home or age 60.
Frequently Asked Questions About ISAs
The overall adult ISA allowance for 2026/27 is £20,000 per tax year. You can split this across Cash ISAs, Stocks & Shares ISAs, Innovative Finance ISAs, and Lifetime ISAs (up to £4,000).
For every £4 you save into a Lifetime ISA (up to £4,000 per tax year), the UK government adds a 25% bonus (up to £1,000/yr), designed for buying a first home up to £450,000 or retirement at age 60.
Yes. All interest earned on Cash ISAs, capital gains on shares sold within an ISA, and dividend payments are 100% exempt from UK Income Tax and Capital Gains Tax.
Rates and calculations on this page are cross-referenced with official UK Government legislation: GOV.UK Individual Savings Accounts (ISAs) Overview (2026/27).