Frequently Asked Questions

An ISA (Individual Savings Account) is a UK tax-free wrapper for savings and investments. Every UK adult can subscribe up to £20,000 per tax year across the four ISA types (Cash, Stocks & Shares, Lifetime, Innovative Finance). Interest, dividends, and capital gains earned inside the wrapper are exempt from UK Income Tax and Capital Gains Tax. The tax year runs 6 April to 5 April, and unused allowance does not roll over.

Not for the current 2026-27 tax year, the full £20,000 allowance applies as usual across all ISA types. A reform announced in the Autumn Budget 2025 will change how it can be used from 6 April 2027: savers under 65 will be limited to £12,000 of Cash ISA subscriptions per year, though the overall £20,000 combined allowance (Cash + Stocks & Shares + Innovative Finance) stays the same, and the remaining £8,000 must go into a non-cash ISA type to be used. Savers 65 and over keep the full £20,000 Cash ISA allowance. Nothing changes before 6 April 2027.

Yes, since 6 April 2024 you can subscribe to multiple ISAs of the same type in a single tax year (a 2024 HMRC rule change). You can also split the £20,000 across different ISA types in any combination. The only sub-limit is the Lifetime ISA, which is capped at £4,000 per tax year (with a 25% government bonus up to £1,000).

The LISA is for UK residents aged 18-39. You can contribute up to £4,000 per tax year and HMRC adds a 25% bonus (up to £1,000/year). Funds can be withdrawn tax-free either to buy a first home (property ≤ £450,000) or after age 60. Any other withdrawal triggers a 25% government charge, which is more than the 25% bonus, so you lose roughly 6.25% of your original contribution.

A Flexible ISA lets you withdraw funds and re-deposit them in the same tax year without using more of your allowance. For example, withdrawing £5,000 and replacing it before 5 April keeps your remaining allowance intact. Not all ISAs are flexible, most Cash ISAs offered by major banks are, but Stocks & Shares ISAs typically are not. See our /guides/flexible-isas guide for the per-provider availability table.

PlainISA derives its calculations from the HMRC ISA Manual (gov.uk), the Personal Savings Allowance guidance, and HMRC published statistics (last full release: April 2024 covering tax year 2022-23, with provisional 2023-24 figures). Rate and threshold information reflects the current 2026-27 tax year. We refresh after each HMRC publication update, typically within 30 days of release.

Yes, ISA transfers do not count against your £20,000 annual subscription allowance. You can transfer Cash ISA to Stocks & Shares ISA (or vice versa), partial-transfer prior years' subscriptions while keeping current-year contributions intact, and consolidate multiple old ISAs. Always use the receiving provider's transfer form, closing and re-subscribing loses tax-free status.

No. PlainISA is an information-only service. We surface HMRC rules, current-year allowances, eligibility criteria, and bonus mechanics from public sources, but we do not recommend specific products, providers, or investment strategies. For advice on which ISA wrapper suits your circumstances, consult an FCA-authorised financial adviser.