Overview
- With the ISA year ending 5 April, savers have a use‑it‑or‑lose‑it £20,000 allowance for 2025/26, and some providers may close applications early.
- HMRC has confirmed that in the tax year someone turns 18, up to £9,000 can go into a Junior ISA before the birthday and a full £20,000 into an adult ISA after, allowing £29,000 in total.
- At current top savings rates near 4.5%, higher‑rate taxpayers may hit tax on interest with roughly £11,000 in non‑ISA savings, and basic‑rate taxpayers at about £22,000, under the Personal Savings Allowance.
- Interest and investment returns inside ISAs are tax‑free and do not count toward the personal allowance, the starting rate for savings or the Personal Savings Allowance; Premium Bonds prizes are tax‑free up to a £50,000 holding.
- From 6 April 2027, the cash ISA cap for under‑65s falls to £12,000 with the remaining £8,000 needing Stocks & Shares or Innovative Finance ISAs, while over‑65s keep the current cash limit.