ISA allowance 2026/27
An ISA lets an adult save or invest without paying tax on the interest, income or gains inside it. The table below shows how much can go in during 2026/27: across all adult ISAs together, into a Lifetime ISA, and into a Junior ISA for a child.
| Allowance | Limit |
|---|---|
| Overall ISA allowance | £20,000 |
| Lifetime ISA annual limit | £4,000 |
| Lifetime ISA bonus rate | 25% |
| Lifetime ISA maximum annual bonus | £1,000 |
| Junior ISA annual limit | £9,000 |
Source: www.gov.uk/individual-savings-accounts, checked 23 September 2026; www.gov.uk/lifetime-isa, checked 23 September 2026; www.gov.uk/junior-individual-savings-accounts, checked 23 September 2026
One allowance shared across every ISA
There are four kinds of adult ISA: cash, stocks and shares, innovative finance and the Lifetime ISA. The overall allowance covers all of them together. A saver can put the whole amount into one account or split it between several, including two of the same kind. Accounts stay open when the tax year ends, and the money in them keeps its tax-free status.
Taking money out does not usually give any allowance back. A flexible ISA works differently: cash taken out can go back in during the same tax year without using more of the allowance. The provider can say whether an account is flexible. Lifetime ISAs have their own withdrawal rules, set out below.
The Lifetime ISA
A Lifetime ISA is meant for a first home or for later life. The saver must be at least eighteen and under forty to open one, and can keep paying in until fifty. The government adds a bonus in proportion to each payment, at the rate shown in the table above. Payments into a Lifetime ISA count towards the overall allowance, and only one Lifetime ISA can take payments in any tax year.
Money can come out without a charge to buy a first home, from the age of sixty, or if the saver is terminally ill with less than twelve months to live. A home purchase has conditions of its own, including a price limit, a mortgage, and at least twelve months since the first payment in. Any other withdrawal carries a charge that takes back the bonus and some of the saver's own money too. The house deposit calculator shows how long a deposit takes to build from monthly saving.
Junior ISAs
A Junior ISA is for a child under eighteen who lives in the UK, and it has its own yearly limit, separate from any adult's allowance. It can hold cash, stocks and shares, or one of each. A parent or guardian with parental responsibility opens and manages the account, and the money belongs to the child. The child can take charge of the account at sixteen and can withdraw the money at eighteen. A child cannot hold a Junior ISA and a Child Trust Fund at the same time, so an existing trust fund has to be transferred in.
The compound interest calculator shows how a starting sum and regular monthly payments grow at a chosen interest rate, over as many years as the account runs. Other allowances for 2026/27 are on the rates and thresholds page.
Questions
Does a Lifetime ISA use up the main ISA allowance?
Yes. Money paid into a Lifetime ISA counts towards the overall ISA allowance for the same tax year, so the rest of the allowance is what remains for other ISAs.
Does ISA interest need to go on a tax return?
No. Interest, income and gains inside an ISA are free of tax, and someone who completes a Self Assessment return does not need to declare them.
Can a parent take money out of a child's Junior ISA?
No. The money belongs to the child. The child can manage the account from sixteen, and withdrawals are possible from eighteen.
This is information, not financial advice.