UK ISA Calculator
Project your ISA savings over time — contributions within the GBP 20,000 annual allowance and tax-free growth compounded.
UK ISA Calculator
2026/27 allowance · Tax-free savings & investment growth
ISA Breakdown
STOCKS & SHARESYour ISA projection summary
A plain-English read of the projection — based on the contributions entered, an assumed growth or interest rate, and the tax-free ISA wrapper. All figures are illustrative estimates, not guarantees.
Value growth over time
The projected ISA value year by year (navy) compared with the total amount paid in (slate). The gap between the lines is tax-free growth, which for investment ISAs is not guaranteed.
| Year | Total Paid In | Projected Value | Of Which Growth |
|---|
The tax-free wrapper benefit
All growth inside an ISA is free of UK tax. Outside an ISA, returns above your personal allowances could be taxable. The figure below is illustrative only.
2026/27 ISA allowances
Key HMRC figures that apply to ISAs for the 2026/27 tax year. Source: GOV.UK Individual Savings Accounts ↗
| Allowance / Limit | 2026/27 Figure | Notes |
|---|---|---|
| Total ISA allowance | £20,000 | Combined across Cash, Stocks & Shares, Innovative Finance and Lifetime ISAs |
| Lifetime ISA sub-limit | £4,000 | Counts within the £20,000; attracts a 25% bonus |
| Lifetime ISA bonus | 25% (max £1,000) | On contributions up to £4,000 a year |
| Junior ISA allowance | £9,000 | Separate from the adult £20,000 allowance |
| Cash ISA limit (from Apr 2027) | £12,000 | For under-65s; the overall £20,000 limit remains |
| Tax on ISA returns | £0 | No income tax, dividend tax, or Capital Gains Tax |
| Allowance carry-over | None | Resets 6 April; unused allowance is not carried forward |
How ISAs Work in the UK
A reference guide to Individual Savings Accounts — the 2026/27 allowances, the different ISA types, the Lifetime ISA bonus, and worked examples. All figures verified against official GOV.UK / HMRC guidance.
2026/27 ISA Allowances at a Glance
| Allowance / Limit | 2026/27 | Applies To |
|---|---|---|
| Total ISA allowance | £20,000 | Across Cash, Stocks & Shares, Innovative Finance and Lifetime ISAs |
| Lifetime ISA sub-limit | £4,000 | Counts within the £20,000; attracts the 25% bonus |
| Lifetime ISA bonus | 25% (max £1,000) | On contributions up to £4,000 a year |
| Junior ISA allowance | £9,000 | Separate from the adult £20,000 allowance |
| Cash ISA limit (from Apr 2027) | £12,000 | For under-65s; the overall £20,000 limit remains |
| Allowance reset | 6 April | Unused allowance does not roll over |
The Four Main ISA Types
How each ISA works. All share the £20,000 total allowance (except the Junior ISA, which is separate).
Cash ISA
Works like a savings account, but interest is free of income tax. Rates vary by provider and typically track the Bank of England base rate. From April 2027 the cash limit falls to £12,000 for under-65s.
Stocks & Shares ISA
Holds funds, shares, bonds, and ETFs inside a tax-free wrapper. Growth is free of Capital Gains Tax and dividends are free of dividend tax. The value can fall as well as rise.
Lifetime ISA (LISA)
For a first home or later life. Pay in up to £4,000 a year and the government adds a 25% bonus (up to £1,000). Open ages 18–39, contribute to 50. Use for a first home up to £450,000 or from age 60; other withdrawals carry a 25% charge.
Junior ISA (JISA)
For under-18s, with a separate £9,000 annual allowance that does not affect an adult's £20,000 limit. Anyone can contribute; the child accesses the funds at 18, when it converts to an adult ISA.
Key Comparisons
Factual structural differences between ISAs and other wrappers — not recommendations.
Cash ISA vs Stocks & Shares ISA
| Factor | Cash ISA | Stocks & Shares ISA |
|---|---|---|
| What it holds | Cash savings | Funds, shares, bonds, ETFs |
| Returns | Interest (rate varies) | Growth & dividends (variable, can fall) |
| Capital risk | Capital not at market risk | Capital at risk |
| Tax inside wrapper | Interest free of income tax | Free of CGT and dividend tax |
| 2026/27 limit | £20,000 (£12,000 from Apr 2027 for under-65s) | £20,000 |
ISA vs SIPP (Pension)
| Factor | ISA | SIPP (Pension) |
|---|---|---|
| Tax relief on money in | None — paid from taxed income | 20% to 45% at marginal rate |
| Annual limit | £20,000 | £60,000 Annual Allowance (or earnings) |
| Access | Any time | From 55 (57 from 2028) |
| Tax on withdrawal | Fully tax-free | 25% tax-free; rest taxed as income |
| Government top-up | 25% bonus on a Lifetime ISA only | Tax relief on all contributions |
Lifetime ISA: First Home vs Later Life
| Use | Conditions | Charge |
|---|---|---|
| First home | Property up to £450,000; held LISA at least 12 months | No charge |
| From age 60 | Any purpose | No charge |
| Other withdrawals | Before 60 and not a qualifying first home | 25% government charge |
Worked Examples
Illustrative scenarios showing how ISA rules apply in practice. Figures are examples only and do not reflect any individual's circumstances or any guaranteed outcome.
UK ISA Rules & Numbers Dashboard
A scannable view of the key ISA figures, how the £20,000 allowance splits across types, the Lifetime ISA bonus effect, and the upcoming rule changes — all sourced from GOV.UK / HMRC for the 2026/27 tax year.
How the £20,000 allowance can split
The £20,000 total can be spread across ISA types in any combination (the Junior ISA's £9,000 is separate). The Lifetime ISA portion is capped at £4,000.
Lifetime ISA bonus effect
Maximising the £4,000 Lifetime ISA contribution adds £1,000 a year of government bonus. Shown over 10 years before any investment growth.
Illustrative growth of £300/month
A £300 monthly ISA contribution over 20 years at three assumed annual rates — all growth tax-free. Illustrative only; investment values can fall as well as rise.
Lifetime ISA key ages
The age rules that govern opening, contributing to, and withdrawing from a Lifetime ISA.
What's changing for ISAs
Confirmed changes from the Autumn Budget 2025 and earlier announcements.
| Change | From | Detail |
|---|---|---|
| Total ISA allowance | 2026/27 | Remains £20,000; expected to hold until at least 2029/30 |
| Cash ISA limit (under-65s) | 6 Apr 2027 | Cut from £20,000 to £12,000; balance must go into other ISA types |
| Stocks & Shares ISA limit | 6 Apr 2027 | Remains at the full £20,000 |
| Lifetime ISA | TBC | A replacement product is under consultation, expected to focus on home buying |
UK ISA & Savings Tax News & Updates
Recent HMRC, HM Treasury and FCA announcements affecting ISA savers and investors — sourced from official government channels.
2026/27 ISA Allowances Confirmed
The 2026/27 tax year began with the total ISA allowance, the Lifetime ISA limit and the Junior ISA allowance all unchanged.
Key Figures
- Total ISA allowance remains £20,000
- Lifetime ISA sub-limit remains £4,000, with a 25% bonus up to £1,000
- Junior ISA allowance remains £9,000, separate from the adult limit
- Multiple ISAs of the same type can be paid into within the £20,000 total
Impact
Savers can plan against the same limits as 2025/26. The frozen £20,000 allowance loses real value to inflation over time.
What to Watch
The total allowance is expected to remain until at least 2029/30, but the cash ISA split changes from April 2027.
Dividend Tax Rates Increased — ISA Wrapper More Valuable
Dividend tax rates rose from April 2026 for income received outside tax wrappers, increasing the relative benefit of holding dividend-paying investments inside a Stocks & Shares ISA.
Key Points
- Dividend tax rates on income outside an ISA increased from April 2026
- The Dividend Allowance remains £500 for 2026/27
- Dividends received inside an ISA remain free of dividend tax
- Capital gains inside an ISA remain free of Capital Gains Tax
Impact
The tax-free wrapper becomes relatively more valuable for investors holding dividend-paying shares or funds.
What to Watch
The £500 Dividend Allowance and £3,000 Capital Gains exempt amount apply only to holdings outside an ISA.
Autumn Budget 2025: Cash ISA Limit Cut from April 2027
The Chancellor confirmed that from 6 April 2027, the amount under-65s can pay into a Cash ISA each year will be cut from £20,000 to £12,000, while the overall £20,000 ISA allowance remains.
Key Changes
- From 6 April 2027, Cash ISA contributions capped at £12,000 for those aged under 65
- The overall £20,000 ISA allowance is unchanged
- The remaining allowance must go into investment ISAs (Stocks & Shares, Innovative Finance)
- Savers aged 65 and over are not affected by the cash cap
- Intended to encourage more investment in UK equities
Impact
2026/27 is the last year under-65s can place the full £20,000 into a Cash ISA. Restrictions on cash-to-investment transfers are expected.
What to Watch
Detailed rules, including on transfers between cash and investment ISAs, are still to be finalised.
ISA Questions, Answered
Common questions about Individual Savings Accounts and the rules that apply for the 2026/27 tax year. Answers are factual and sourced from official GOV.UK / FCA guidance.
An Individual Savings Account (ISA) is a tax-free wrapper for savings or investments. Interest, dividends, and capital gains earned inside an ISA are free of UK income tax, dividend tax, and Capital Gains Tax.
The total amount that can be paid in across all adult ISA types is £20,000 for the 2026/27 tax year.
GOV.UK — Individual Savings AccountsThere are four main types: Cash ISA (savings, interest tax-free), Stocks & Shares ISA (investments, growth and dividends tax-free), Lifetime ISA (for a first home or later life, with a 25% bonus), and Innovative Finance ISA (peer-to-peer lending). A separate Junior ISA is available for under-18s.
GOV.UK — How ISAs WorkMost adult ISAs are available to UK residents aged 18 or over (16 or over for some Cash ISAs under earlier rules). A Lifetime ISA can only be opened between ages 18 and 39. A Junior ISA is opened by a parent or guardian for a child under 18.
GOV.UK — Individual Savings AccountsCash held with an FCA-authorised bank or building society is generally protected by the Financial Services Compensation Scheme up to applicable limits. For a Stocks & Shares ISA, the value of investments can fall as well as rise, and FSCS protection does not cover investment losses caused by market movements.
FCA — ConsumersThe total ISA allowance for 2026/27 is £20,000, shared across Cash, Stocks & Shares, Innovative Finance, and Lifetime ISAs. The Lifetime ISA has a £4,000 sub-limit within that total. The Junior ISA allowance of £9,000 is separate.
GOV.UK — Individual Savings AccountsNo. Interest, dividends, and capital gains earned inside an ISA are free of UK income tax, dividend tax, and Capital Gains Tax. There is also no need to declare ISA income on a Self Assessment tax return.
GOV.UK — Individual Savings AccountsNo. The ISA allowance resets on 6 April each year and any unused amount does not carry forward. Each tax year provides a fresh £20,000 allowance.
GOV.UK — Individual Savings AccountsFrom 6 April 2027, the amount that savers under 65 can pay into a Cash ISA each year will be cut from £20,000 to £12,000. The overall £20,000 ISA allowance is unchanged — the remaining amount must go into investment ISAs. Savers aged 65 and over are not affected.
HM Treasury — Autumn Budget 2025The government adds a 25% bonus on Lifetime ISA contributions of up to £4,000 a year — a maximum bonus of £1,000 a year. The bonus is paid on the amount contributed, so paying in the full £4,000 adds £1,000.
GOV.UK — Lifetime ISAA Lifetime ISA can be used toward a first home costing up to £450,000, or withdrawn from age 60 for any purpose. The account must usually have been open at least 12 months before a first-home withdrawal.
GOV.UK — Lifetime ISAWithdrawing for any reason other than a qualifying first home, reaching age 60, or terminal illness incurs a 25% government charge. Because the charge applies to the contribution plus the bonus, it can return less than was originally paid in.
GOV.UK — Withdrawing from a Lifetime ISAA Lifetime ISA can be opened between ages 18 and 39. Contributions of up to £4,000 a year, with the 25% bonus, can continue until age 50. A replacement product is under government consultation.
GOV.UK — Lifetime ISACash and Stocks & Shares ISAs can usually be accessed at any time. With a "flexible" ISA, money withdrawn can be replaced within the same tax year without using more of the allowance. The Lifetime ISA has its own access rules and withdrawal charge.
GOV.UK — Withdrawing ISA MoneyYes. ISAs can be transferred between providers without losing their tax-free status, provided the official ISA transfer process is used rather than withdrawing and re-depositing. Transferring current-year subscriptions must move the full amount paid in that year.
GOV.UK — Transferring Your ISAYes. Since 6 April 2024, multiple ISAs of the same type can be paid into within a single tax year, as long as the £20,000 total is not exceeded. Only one Lifetime ISA can be subscribed to per tax year.
GOV.UK — Individual Savings AccountsA surviving spouse or civil partner may be entitled to an Additional Permitted Subscription equal to the value of the deceased's ISA, on top of their own allowance. The ISA's tax advantages can continue for a limited period during estate administration.
GOV.UK — ISAs If You DieImportant Disclaimer
For educational and informational purposes only. This calculator produces an illustrative projection of an ISA based on the inputs provided and HMRC rules for the 2026/27 tax year. It models regular contributions, an assumed annual interest or growth rate, the 25% Lifetime ISA government bonus where applicable, and the tax-free ISA wrapper. The calculator simplifies many aspects of saving and investing and does not capture every individual circumstance.
Investment returns are not guaranteed. For a Stocks & Shares ISA or an invested Lifetime ISA, the assumed growth rate is an illustration only. The value of investments can fall as well as rise, and the final value may be higher or lower than any figure shown. Cash ISA interest rates also vary over time and by provider. Past performance is not a guide to future returns.
Not a complete picture of ISA rules. Allowances, sub-limits, and access rules vary by ISA type. The Lifetime ISA carries a 25% government charge on most withdrawals before age 60 that are not a qualifying first-home purchase. From 6 April 2027, the Cash ISA limit falls to £12,000 for under-65s, while the overall £20,000 allowance remains. A replacement for the Lifetime ISA is under government consultation.
No warranty of accuracy. While Money Snap takes reasonable care to source figures from official authorities (HMRC, GOV.UK, FCA), this calculator is provided "as is" without any express or implied warranty as to accuracy, completeness, timeliness, or fitness for any particular purpose. Allowances and rules change — figures shown may be out of date, and individual circumstances not captured by the inputs may materially affect actual outcomes.
Not financial advice. Information provided is general in nature only and does not take into account personal objectives, financial situation, or needs. Results do not constitute financial, tax, or legal advice, and use of this calculator does not create an advisory relationship. Before acting on any figure shown, obtain advice from an FCA-regulated financial adviser, refer to the relevant provider's terms, or refer to GOV.UK directly.
Limitation of liability. To the maximum extent permitted by law, Money Snap accepts no liability for any loss, damage, cost, or expense — direct or indirect — arising from reliance on this calculator or the information it produces. Users are responsible for verifying all figures with the relevant authority before relying on them. Use of this calculator is subject to our Terms of Use.