What is the isa allowance?
The ISA allowance is the maximum you can pay into Individual Savings Accounts each tax year. Interest, dividends and gains inside them are tax free. For 2026/27 it is £20,000. From April 2027, savers under 65 will only be able to put up to £12,000 of that into cash ISAs.
ISAs were introduced in 1999. There are several types: cash ISAs, stocks and shares ISAs, Lifetime ISAs and Innovative Finance ISAs. You can split the £20,000 between them however you like, though the Lifetime ISA has its own limit of £4,000 within the total. Junior ISAs for children have a separate limit of £9,000. Money can be moved between providers without using the allowance, through an ISA transfer.
Any interest, dividends or gains inside an ISA are tax free, and you do not need to report them. Unused allowance cannot be carried forward, so the limit resets each 6 April. The £20,000 limit has been unchanged since 2017. In the November 2025 Budget the government announced that, from April 2027, under-65s will be limited to £12,000 a year in cash ISAs.
The change aims to nudge more savers into investing in shares to support UK firms. Building societies argued it could reduce funds for mortgages. Critics of ISAs say the tax break mostly helps people who can afford to save large sums. Supporters say ISAs are simple, popular and encourage saving across all incomes. The changes take effect after the 2026/27 tax year ends.
Who it affects: Savers and investors
Some on the left argue generous ISA limits mainly help the well off, and favour capping or redirecting the tax relief.
The right generally supports ISAs as rewarding saving and investment, and some want the limits raised.
Britain is split. Now you decide.
In WeDecide you can change the ISA allowance in your Budget and weigh a small tax cost against encouraging saving.
Play WeDecide freeCommon questions
What is the ISA allowance for 2026/27?
It is £20,000 per person.
Is the cash ISA limit changing?
Yes. From April 2027 under-65s can put up to £12,000 a year into cash ISAs.
Can I have more than one ISA?
Yes, as long as your total payments stay within the £20,000 annual allowance.