ISA Allowance Tracker

The ISA in plain English

An ISA — Individual Savings Account — is a tax wrapper. Anything you put in, up to the annual allowance, grows free of UK income tax and capital gains tax for as long as it stays inside. You can withdraw without notifying HMRC. There's no tax to declare. That's it. The clever bit is the "for life" part: the £20,000 you put in this April keeps its tax-free status forever, even decades later.

The four flavours

• Cash ISA — works like a savings account but the interest is tax-free. Best for short-term savings or your emergency fund.
• Stocks & Shares ISA — invest in funds, shares and bonds. Any growth and dividends are tax-free. Best for 5+ year horizons.
• Lifetime ISA — pay in up to £4,000/year, get a 25% government bonus on top. Designed for a first home (under £450k) or retirement at 60. Penalty applies otherwise.
• Innovative Finance ISA — peer-to-peer lending in a tax wrapper. Higher rates, higher risk; not protected by the FSCS savings guarantee.

The rule that trips people up

Your £20,000 limit covers all flavours combined — and the LISA's £4,000 sits inside that £20,000, not on top. So a max-LISA contribution leaves £16,000 spread across the others. Put £4,000 into a LISA and £20,000 into Stocks & Shares and you've broken the rule by £4,000.

Use it or lose it (mostly)

The annual allowance resets every 6 April. Anything unused is gone — you can't carry it forward. That's why "ISA season" hits in late March, with banks rolling out promotional rates to mop up last-minute cash before the new tax year.

Frequently asked questions

Can I open more than one of the same type now?

Yes. Since April 2024 you can pay into multiple ISAs of the same type in the same tax year (e.g. two Cash ISAs), as long as the total contributions stay within £20,000. The Lifetime ISA still has its own £4,000 sub-limit and you can only pay into one LISA per year.

Does the LISA bonus count towards my £20,000?

No. Only your contributions count. The 25% government bonus is paid on top.

Is the £20,000 frozen forever?

It's been £20,000 since 2017/18 and the government has confirmed it through 2029/30. Future governments can change it.

What about Junior ISAs?

JISAs have their own separate £9,000 allowance, so paying into your child's JISA doesn't reduce your own £20,000.