ISA allowance 2025/26
Remember that investments go up and down in value, and you could lose money as well as make it. How you’re taxed will depend on your circumstances, and ISA and tax rules can change.
What is an ISA allowance?
The ISA allowance is the maximum you can put into your individual saving accounts (ISAs) per tax year. At AJ Bell, we offer a Stocks and shares ISA and Lifetime ISA, but not a cash ISA or innovative finance ISA.
Read on to learn how the subscription allowance works, what happens if you exceed it, and discover some tips on making the most of it.
What is the maximum ISA allowance?
In the 2025/26 tax year, the maximum ISA allowance for adults is £20,000, of which £4,000 can be paid into a LISA. Junior ISAs have their own annual allowance, which is currently £9,000.
You can divide your allowance how you wish and even pay into more than one Cash ISA, Stocks and shares ISA or Innovative Finance ISA at the same time. Just keep in mind that you can only pay into one Lifetime ISA in each tax year. There's no ISA minimum amount you need to pay in each tax year, and many providers will accept regular payments as well as lump sums.
Types of ISAs
| Account | Annual allowance | Eligibility |
|---|---|---|
Stocks and shares ISA |
£20,000 per tax year |
Aged over 18 UK resident or Crown employee (or their spouse/civil partner) |
Lifetime ISA |
£4,000 per tax year (which counts towards your overall annual ISA allowance) |
Aged 18-39 to open an account Can pay into the account until aged 50 UK resident or Crown employee (or their spouse/civil partner) |
Junior ISA |
£9,000 per tax year |
Aged under 18 UK resident Can be opened by a parent or guardian of a child |
When does the ISA allowance reset?
On 6 April, your ISA limit is reset to £20,000. You don’t have to use the full £20,000 each year. Any remaining annual ISA allowance you have left over on 5 April will not roll over into the new tax year. Your ISA allowance is personal to you. So, if you’re married or in a civil partnership, you’ll each have your own allowance per tax year.
Can I pay into two ISAs in the same tax year?
You can pay into more than one individual savings account in a tax year, including accounts of the same type, as long as you don’t exceed your £20,000 ISA allowance. This applies to Cash ISAs, Stocks and shares ISAs and Innovative Finance ISAs.
If you’re thinking of paying into a Lifetime ISA, or a Junior ISA on behalf of a child, you can only pay into one account of each type each tax year – bear in mind the allowances those accounts have.
Learn about opening multiple ISA accountsAs you can pay into multiple ISAs of the same type, it’s important that you keep a record of all your payments. Each ISA manager will only know how much you have paid to them.
If you miscalculate how much you’ve paid into all your ISAs during the tax year, you may end up paying in more than the allowance of £20,000.
What happens if I accidentally exceed my annual ISA allowance?
Even if it's a genuine mistake, you shouldn't attempt to fix it by withdrawing money from one account. Instead, contact your ISA providers to explain the situation. They'll work with you to find the best way to fix it — though there may be a charge for any tax due.
If you don’t notice the mistake, HMRC will pick it up at the end of the tax year, when your providers send them details of the money they’ve received from you.
What happens at the end of a tax year?
At the end of the tax year, your ISA provider reports to HMRC the payments you’ve made. In a Stocks and shares ISA, any income or gains you’ve made on your investments will be free of tax.
Inherited ISA allowance
If your spouse or civil partner dies, you can inherit the value of their ISA(s) on top of your usual £20,000 allowance. This is officially known as an additional permitted subscription (APS).
The amount of ISA allowance you inherit will be the value of your spouse or civil partner’s account at the date of death. Or if it’s higher, it will be the value of their account at the date it stops being a ‘continuing ISA’.
An ISA stops being a continuing ISA at the earliest of these three events:
- The completion of the administration of the estate
- The third anniversary of their date of death
- The closure of the ISA because all the funds have been withdrawn
To inherit someone’s ISA allowance, you must have been married and living with them at the date of their death. The inherited allowance isn’t available to children or other family members.
Time limits also apply. If you want to subscribe using investments you’ve inherited from your spouse’s Stocks and shares ISA, you need to do this within 180 days of the investments passing to you. You can also use the inherited ISA allowance by paying in extra cash to your ISA – which you’ll usually need to do within three years of the date of death.
Tips on using your ISA allowance
- Use as much of your allowance as you can each tax year, as it doesn't roll over
- Secure your allowance by funding your ISA – investing the money can wait until later, when you're ready
- Invest early in each tax year for the biggest benefit
- Don't forget Junior ISAs – a tax-efficient, long-term way to save for your child’s university fees or house deposit
- Open a Lifetime ISA if you’re aged 18–39 and you can enjoy a government-boosted way of saving for your first home or later life
- Remember that both married partners get their own ISA allowance
Learn more about our ISA accounts
Invest £20,000 this tax year into our tax-efficient ISA, and access your money when you want it.
Invest up to £4,000 per year in our Lifetime ISA and get a government bonus of up to £1,000.
Build a nest egg for your child – save up to £9,000 tax-free every year until they turn 18.