How Many ISAs Can I Have in the UK?
Master the intricacies of UK Individual Savings Accounts. Learn how to maximize your tax-free savings by understanding their limits and various forms.
An Individual Savings Account (ISA) in the UK provides a tax-efficient way to save and invest. These accounts shield your money from UK income tax, capital gains tax, and dividend tax on the interest, gains, or returns earned within them.
Annual Subscription Rules
Individuals can subscribe to multiple ISAs in a single tax year, provided they adhere to the annual ISA allowance. For the 2025-2026 tax year, the allowance is £20,000, which can be split across various ISA types. This allowance resets at the start of each tax year, running from April 6th to April 5th, and any unused allowance cannot be carried over.
You can contribute to multiple Cash ISAs, Stocks & Shares ISAs, and Innovative Finance ISAs within the same tax year. However, you can only subscribe to one Lifetime ISA in a given tax year. Any money paid into an ISA during a tax year counts towards that year’s allowance and, once allocated, generally cannot be re-used for a different ISA of the same type, though some flexible ISAs allow withdrawal and replacement within the same tax year.
Understanding ISA Types
The UK offers four types of adult ISAs. A Cash ISA functions as a savings account where interest earned is entirely tax-free. These can offer variable or fixed interest rates and may provide instant access or require funds to be locked in for a set period.
A Stocks & Shares ISA allows investments in assets like company shares, funds, and bonds, with any growth and income free from UK income tax and capital gains tax. This ISA is suited for long-term investment horizons due to market fluctuation risks.
An Innovative Finance ISA (IFISA) offers tax-free returns from peer-to-peer lending and crowdfunding debentures. While IFISAs can offer higher potential returns, they carry higher risk than Cash ISAs, as investments are not protected by the Financial Services Compensation Scheme.
The Lifetime ISA (LISA) is designed for individuals aged 18 to 39 saving for a first home or retirement. You can contribute up to £4,000 each tax year, and the government adds a 25% bonus on these contributions, up to £1,000 annually, until you turn 50. Funds can be withdrawn without penalty to purchase a first home up to £450,000 or from age 60; otherwise, a 25% withdrawal charge applies.
Managing Existing ISAs
There is no restriction on the number of ISAs an individual can hold from previous tax years. You can accumulate multiple ISA accounts over time, each holding funds from past allowances, while maintaining their tax-free status.
To move funds between ISAs, an official ISA transfer process must be followed to ensure the tax-free wrapper is maintained. Simply withdrawing money and then depositing it into a new ISA will cause the funds to lose their tax-free status and count towards your current year’s allowance. For transfers of funds from previous tax years, you can transfer all or part of the savings. For current year subscriptions, generally, the entire amount must be transferred, though some providers may allow partial transfers. ISA transfers typically take around 15 working days for Cash ISAs and up to 30 calendar days for other types, such as Stocks & Shares ISAs.