How Many ISAs Can I Have? Subscription Rules Explained
Master the rules for UK Individual Savings Accounts. Learn your annual subscription limits and how to strategically manage multiple ISAs for optimal tax-free growth.
An Individual Savings Account (ISA) in the United Kingdom provides a tax-efficient way to save and invest. It acts as a protective wrapper, shielding your money from income tax, capital gains tax, and dividend tax on the returns earned. This article explains the rules for subscribing to ISAs and managing contributions in a single tax year.
Core Rules for ISA Subscriptions
Individuals can subscribe to ISAs each tax year, which runs from April 6th to April 5th. The overall annual ISA subscription limit for the 2025/2026 tax year is £20,000. This limit applies across all adult ISA types combined and is per individual.
Since April 2024, changes allow individuals to open and contribute to multiple ISAs of the same type within a single tax year. For instance, you could contribute to several Cash ISAs or multiple Stocks & Shares ISAs, provided your total contributions do not exceed the £20,000 annual allowance. You are limited to opening and contributing to only one Lifetime ISA per tax year. Junior ISAs have a separate annual allowance of £9,000 and do not count towards an adult’s personal ISA limit.
Understanding Different ISA Types
The UK offers several types of ISAs, each designed for different financial goals. Cash ISAs function much like traditional savings accounts, providing tax-free interest on deposited funds. These are typically considered lower risk, suitable for short-term savings or emergency funds.
Stocks & Shares ISAs allow investments in the stock market through funds, shares, or other securities, with any gains or income being tax-free. While offering potential for higher returns, they carry investment risk.
Innovative Finance ISAs (IFISAs) are designed for peer-to-peer lending and crowdfunding debentures, offering returns from lending money to individuals or businesses. These generally involve higher risk than Cash ISAs.
Lifetime ISAs (LISAs) are specifically for individuals aged 18 to 39, designed to help save for a first home or retirement. Contributions up to £4,000 per year receive a 25% government bonus.
Junior ISAs, available for those under 18, come in cash or stocks and shares versions and offer a tax-efficient way for parents or guardians to save for a child’s future.
Managing Your ISA Portfolio
The annual ISA allowance of £20,000 can be split across different ISA types to suit various financial objectives. For example, you might allocate £5,000 to a Cash ISA, £4,000 to a Lifetime ISA, and the remaining £11,000 to a Stocks & Shares ISA within the same tax year. It is important to remember that the £4,000 Lifetime ISA limit is part of the overall £20,000 allowance.
Transferring ISA funds between providers or even between different ISA types maintains the tax-free status of your savings. When moving funds, initiate the transfer through the new ISA provider, rather than withdrawing the money yourself, to preserve tax benefits. If you withdraw the funds directly, that portion of your allowance may be lost.
Funds contributed in previous tax years can be transferred either partially or in full. For funds subscribed in the current tax year, rules introduced in April 2024 allow for partial transfers, though some providers may still require a full transfer of these funds. Importantly, transferring an ISA does not count as a new subscription and therefore does not impact your annual ISA allowance.