ISA Rules UK 2026-27 Tax Year
The annual ISA allowance for the 2026-27 tax year (6 April 2026 to 5 April 2027) remains at £20,000 per adult. This is the total you can put across all your ISAs in a single tax year.
Source: HMRC ISA guidance 2026-27. Always verify the current rules at gov.uk/individual-savings-accounts before opening an ISA.
Best Cash ISA Rates UK April 2026
The Bank of England base rate as of April 2026 determines the upper range of cash ISA rates available. The following rates were available from major providers in April 2026 — always verify current rates directly with the provider as they change frequently:
IMPORTANT: Cash ISA rates change frequently and are highly competitive in 2026. Rather than listing rates that may be out of date, always compare current rates using Moneyfactscompare.co.uk or directly with providers before opening an account. The best rates change weekly.
Stocks and Shares ISA vs Cash ISA: Which Is Better?
The right choice depends on your time horizon, risk tolerance, and financial goals. Neither is universally better — they serve different purposes.
How much can I put in an ISA in 2026?
The annual ISA allowance for the 2026-27 tax year is £20,000 per adult. This is the total across all your ISAs — you cannot put £20,000 in a cash ISA and another £20,000 in a stocks and shares ISA in the same tax year. The Junior ISA allowance is a separate £9,000 per child. The Lifetime ISA sub-limit is £4,000 per year, which counts toward the overall £20,000.
What is the best cash ISA rate in the UK right now?
Cash ISA rates change frequently and are highly competitive in 2026 following the Bank of England rate cycle. Trading 212, Plum, and Chip have consistently offered some of the highest instant access cash ISA rates. Always compare current rates at Moneyfactscompare.co.uk before opening — the best rate today may not be the best rate tomorrow.
Can I have more than one ISA?
Yes. Since April 2024, HMRC rules allow you to subscribe to multiple ISAs of the same type in the same tax year — for example, two different cash ISAs. You still cannot exceed the overall £20,000 annual allowance across all ISA types combined. You can also hold ISAs from previous years with multiple providers simultaneously.
What happens to my ISA when I die?
From 6 April 2018, ISAs became Additional Permitted Subscriptions (APS) — your surviving spouse or civil partner can inherit your ISA allowance in addition to their own £20,000. The ISA wrapper itself does not automatically transfer; the APS allowance allows them to shelter an equivalent amount. ISA funds form part of your estate for inheritance tax purposes unless held in an AIM ISA.
Is a Lifetime ISA worth it?
A Lifetime ISA is valuable for two specific purposes: saving for a first home purchase (property up to £450,000) or saving for retirement. The 25% government bonus on up to £4,000 per year is a significant benefit. However, there is a 25% withdrawal penalty for any other use — which means withdrawing early returns less than you put in once the penalty is applied. Only open a LISA if you are confident about which purpose you are saving for.
What is the difference between an ISA and a savings account?
Both hold cash, but interest in a standard savings account counts as income and may be subject to income tax above your Personal Savings Allowance (£500 for higher-rate taxpayers, £1,000 for basic-rate taxpayers in 2026-27). Interest earned inside a cash ISA is always tax-free regardless of how much you earn or how much interest you receive. For higher earners or those with large savings balances, a cash ISA offers a clear tax advantage.
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This article is for informational purposes only and does not constitute financial advice. Always verify rates and policy details with official sources before making any financial decision.
