Frequently Asked Questions
What's the ISA allowance for 2026/27?
£20,000 across all your ISAs combined for the 2026/27 tax year. You can split it between Stocks & Shares, Cash, Innovative Finance, and Lifetime ISAs in any proportion. The Lifetime ISA itself caps at £4,000 of that £20,000.
What is a Lifetime ISA (LISA)?
A Lifetime ISA gives you a 25% government bonus on contributions up to £4,000 a year (so up to £1,000 free per year). You can use it for a first home up to £450,000, or withdraw penalty-free from age 60. Withdrawals for any other reason carry a 25% penalty — which actually loses you slightly more than the bonus you received.
Stocks & Shares ISA vs Cash ISA — which is better?
For investment horizons of 5+ years, Stocks & Shares historically beat Cash ISAs by a wide margin (S&P 500 ~7% real return vs cash ~0–2% real). For short-term goals or emergency funds, Cash ISAs win because the principal is safe. This calculator shows the typical gap on your specific numbers.
Can I have both a Stocks & Shares ISA and a Cash ISA?
Yes. You can pay into one of each type per tax year (S&S, Cash, Innovative Finance, LISA) as long as the total across all of them stays under £20,000. From April 2024 you can also split contributions between multiple S&S or multiple Cash ISAs — a rule change that simplified things considerably.
What happens to my ISA if I die?
Your spouse or civil partner inherits an Additional Permitted Subscription (APS) equal to the ISA's value at your death — they can shelter that extra amount in their own ISA on top of the normal £20k. The investments themselves remain in the estate.