The 2026/27 tax year ends on Monday 5 April 2027. Any ISA allowance you haven’t used by then is gone for good. This year the deadline matters more than usual, because three ISA rules change the next day.
Key dates
| Date | What happens |
|---|---|
| Monday 5 April 2027 | Last day to use your 2026/27 ISA, Lifetime ISA and Junior ISA allowances |
| Monday 5 April 2027 | Last day under-65s can transfer a Stocks & Shares ISA into a Cash ISA |
| Tuesday 6 April 2027 | New £20,000 allowance; £12,000 Cash ISA limit for under-65s; 22% charge on interest from cash held in Stocks & Shares ISAs |
Platforms need your money to arrive, and sometimes to be invested, before the deadline. Many set their own cut-off a few days earlier for transfers, cheques and Bed and ISA requests. Check your platform’s cut-off, and don’t leave it to the last day.
Your 2026/27 allowances
| Allowance | Amount |
|---|---|
| ISA (all types combined) | £20,000 |
| of which Lifetime ISA | up to £4,000 (25% government bonus) |
| Junior ISA, per child | £9,000 (separate from yours) |
| Capital gains annual exempt amount | £3,000 |
| Dividend allowance | £500 |
The £20,000 ISA allowance is frozen until 2030. You can split it across as many ISAs as you like in the same tax year; see holding multiple ISAs.
Why the ISA wrapper is worth more this year
Outside an ISA, investment income is taxed more heavily than it used to be:
- The dividend allowance is only £500, and from April 2026 the basic-rate dividend tax rate rose from 8.75% to 10.75%.
- The capital gains annual exempt amount is £3,000.
Inside an ISA, dividends and gains are tax-free with no limit. If you have investments outside an ISA, moving £20,000 a year inside it each April is one of the simplest ways to cut future tax.
What changes on 6 April 2027
Cash ISA limit falls to £12,000 for under-65s
The overall allowance stays at £20,000, but if you’re under 65 only £12,000 of it can go into Cash ISAs. The other £8,000 can only go into a Stocks & Shares ISA (or an Innovative Finance ISA). People aged 65 and over keep a £20,000 Cash ISA limit.
No more Stocks & Shares to Cash ISA transfers for under-65s
From 6 April 2027, under-65s can’t transfer from a Stocks & Shares ISA into a Cash ISA. If you’ve been planning to move investments into cash, for example to reduce risk ahead of a house purchase, 5 April 2027 is your last chance to do it within the ISA wrapper. Transfers from Cash ISAs into Stocks & Shares ISAs are still allowed. See our ISA transfer guide.
22% charge on cash interest in Stocks & Shares ISAs
To stop Stocks & Shares ISAs being used as a way round the Cash ISA limit, interest earned on uninvested cash inside a Stocks & Shares ISA will face a 22% charge. Shares, funds, ETFs and their dividends and gains stay tax-free. Holding some money market funds alongside other investments is still treated as investing, as long as they aren’t your whole ISA.
If you keep a large cash balance in your Stocks & Shares ISA, it’s worth deciding before April 2027 whether to invest it or move it.
Before-the-deadline checklist
- Use your £20,000. Top up your Stocks & Shares or Cash ISA. Unused allowance doesn’t carry over.
- Bed and ISA anything held outside an ISA. Sell investments in a general account and rebuy them in your ISA. Gains up to £3,000 are tax-free. Most platforms do this as one transaction, though you’ll usually pay dealing charges and, for UK shares, 0.5% stamp duty on the repurchase.
- Fund your Lifetime ISA. Paying in £4,000 before 5 April gets you a £1,000 government bonus. You can open one between 18 and 39 and pay in until 50. Withdrawals other than for a first home or after 60 carry a 25% charge.
- Top up Junior ISAs. Each child can receive up to £9,000. See the cheapest Junior ISAs.
- Decide on Stocks & Shares to Cash transfers if you’re under 65, before the ban on 6 April 2027.
- Check what you’re paying. If you’re topping up anyway, it’s a good moment to check whether your platform is still competitive. Fees changed a lot in 2026; see our fee changes tracker.
Where to put this year’s allowance
If you’re opening a new ISA or adding to one, the cheapest platform depends on what you invest in:
- Funds: see the cheapest stocks and shares ISA by portfolio size
- Shares and ETFs: see the best share dealing ISA
- Moving an existing ISA: it doesn’t use your allowance; see how to transfer an ISA
Or use the fee calculator to compare every platform at your portfolio size.
Based on HMRC rules and government announcements as of October 2026. Check gov.uk for the latest rules.