ISA Allowance & Tax Saving Calculator

The annual ISA allowance is £20,000. You can split this across different ISA types (Cash, Stocks & Shares, Innovative Finance, Lifetime ISA — LISA capped at £4,000).

Cash ISA: tax-free savings account. Stocks & Shares ISA: tax-free investment wrapper. Innovative Finance ISA (IFISA): peer-to-peer lending. Lifetime ISA (LISA): 25% government bonus (up to £1,000/year), for first home or retirement.

Yes. Since April 2024, you can open and contribute to multiple ISAs of the same type in a tax year, provided your total contributions don't exceed £20,000.

LISA gives 25% bonus on contributions of up to £4,000/year (maximum £1,000 bonus/year). Open to age 18-39 (contributions until age 50). Used for first home purchase or retirement from age 60.

Yes. You can transfer ISAs between providers at any time without losing the ISA status. A transfer is not the same as withdrawing and depositing — withdrawal loses ISA status.

No. All income, dividends, and capital gains within an ISA are completely tax-free.

No. The £20,000 allowance is use-it-or-lose-it — unused allowance does not carry forward to the next tax year.

Yes. Junior ISA (JISA) allows up to £9,000/year per child. The child gains access at 18 when it becomes a standard ISA.

An ISA passes to your estate and loses ISA status after administration. However, spouses/civil partners can apply for an Additional Permitted Subscription (APS) equal to the deceased partner's ISA value.

No. Cash ISAs only hold cash. For shares, funds, or ETFs, you need a Stocks & Shares ISA.

Higher rate taxpayers pay 33.75% dividend tax and 24% CGT. Holding investments in an ISA eliminates these taxes entirely, which is particularly valuable for those with larger portfolios.

Depends on time horizon. Short-term needs: Cash ISA (lower risk). Long-term (5+ years): Stocks & Shares ISA historically outperforms cash over long periods. Consider both as part of a balanced approach.