The ISA allowance for the 2027/28 tax year is £20,000, and you can put the full amount into a Cash ISA if you want to. The government had planned to cap Cash ISAs at £12,000 for under-65s from April 2027, but Chancellor John Healey scrapped that cut in the Autumn Budget on 28 October 2026.
ISA limits for 2027/28
| Account | Yearly limit | Notes |
|---|---|---|
| All ISAs combined | £20,000 | Split across ISA types however you like |
| Cash ISA | Up to £20,000 | Planned £12,000 cap scrapped |
| Stocks and Shares ISA | Up to £20,000 | Investments grow tax-free |
| Lifetime ISA | £4,000 | Counts toward the £20,000; 25% bonus |
| Junior ISA | £9,000 per child | Separate from your own allowance |
The tax year runs from 6 April 2027 to 5 April 2028. Any allowance you do not use by 5 April is lost; it does not roll over.
What changed in the Budget
- Cash ISA cap scrapped: savers of any adult age can still put all £20,000 into cash.
- Other planned restrictions dropped: the planned limits on moving money from a Stocks and Shares ISA into cash were also dropped, according to savings industry reports.
- Lifetime ISA: from 29 October 2026, the withdrawal charge for buyers whose home costs more than the £450,000 cap falls from 25% to 20%.
- First Time Buyer ISA: a new account due in April 2029 that is meant to eventually replace the Lifetime ISA for home buying.
- Savings tax rising: from April 2027, tax on savings interest outside an ISA goes up by four percentage points, to 24% for basic-rate and 44% for higher-rate taxpayers. That makes the ISA wrapper more valuable.
Cash ISA or Stocks and Shares ISA?
Cash is best for money you need within about five years and for your emergency fund. For goals further away, a Stocks and Shares ISA has historically grown more, though its value can fall. Many people use both. Our guide to Stocks and Shares ISA vs Cash ISA compares them, and the ISA calculator shows how your money could grow.
Tips for using your allowance
- Pay in early in the tax year so your money has longer to grow tax-free.
- Use a transfer form when moving ISAs between providers; withdrawing and paying back in can use up your allowance.
- Couples each get £20,000, so a household can shelter £40,000 a year.
- If you are saving for a first home, compare the Lifetime ISA with other options before April 2029.
- Live prices and sentiment on every ticker page
- Weekly email with your watchlist movers
- Price alerts on the stocks and coins you follow
Frequently asked questions
Is the Cash ISA limit still changing in 2027?
No. The £12,000 cap that was due in April 2027 was scrapped in the October 2026 Budget.
Can I have more than one ISA?
Yes. You can open several ISAs in the same tax year, as long as the total paid in stays within £20,000.
Is the ISA allowance going up?
It has been frozen at £20,000 since 2017/18 and is staying at that level for 2027/28.
Sources: Autumn Budget 2026 coverage by Moneyfacts and MoneySuperMarket. This article is general information, not financial advice.
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