How Many ISAs Can I Open in a Single Tax Year?

Individual Savings Accounts (ISAs) are a financial tool in the United Kingdom designed to help individuals save and invest money tax-efficiently. These accounts allow any interest earned, investment gains, or dividends to grow free from UK Income Tax, Capital Gains Tax, and Dividend Tax. They encourage long-term savings by providing a protected environment for various types of assets.

Number of ISAs Per Tax Year

For the 2025/2026 tax year, the overall annual ISA allowance is £20,000. This allowance represents the maximum amount an individual can subscribe across all their ISAs combined within that tax year. The rules regarding the number of ISAs one can open have evolved, offering increased flexibility.

Since April 2024, an individual has been able to open and contribute to multiple ISAs of the same type within the same tax year, a change from previous regulations. This means a person could open several Cash ISAs with different providers or multiple Stocks and Shares ISAs in one tax year, as long as the total contributions across all these accounts do not exceed the £20,000 annual allowance. The exception to this rule is the Lifetime ISA, where an individual can still only open and pay into one per tax year.

Types of Individual Savings Accounts

There are several types of Individual Savings Accounts, each serving different financial objectives. A Cash ISA functions much like a traditional savings account, allowing individuals to earn tax-free interest on their cash deposits. These accounts are generally considered lower risk, and some offer flexible access to funds.

A Stocks and Shares ISA permits investments in assets such as company shares, unit trusts, investment funds, corporate bonds, and government bonds. While offering the potential for higher returns, these accounts carry more risk compared to Cash ISAs, as the value of investments can fluctuate. Innovative Finance ISAs provide an avenue for individuals to invest in peer-to-peer loans or crowdfunding debentures. This type of ISA connects investors directly with businesses or individuals seeking funding, potentially offering higher interest rates but also involving increased risk.

The Lifetime ISA (LISA) is designed to help young people save for their first home or retirement. Individuals aged 18 to 39 can open a LISA and contribute up to £4,000 each tax year, receiving a 25% government bonus on their contributions. Funds can be held as cash or invested in stocks and shares. The Junior ISA (JISA) is a long-term savings account for children under 18, with an annual allowance of £9,000. Money in a JISA can be saved as cash or invested in stocks and shares, converting to an adult ISA at age 18.

Managing Your ISA Contributions

The £20,000 overall annual allowance for the 2025/2026 tax year can be split across any combination of eligible ISA types, with the exception of the Lifetime ISA, which has its own £4,000 sub-limit that counts towards the overall allowance. For example, a person could allocate £10,000 to a Cash ISA and the remaining £10,000 to a Stocks and Shares ISA. If the full annual allowance is not utilized by April 5, it cannot be carried over to the next tax year; this is often referred to as a “use it or lose it” rule.

Transferring funds between ISA providers or different ISA types does not impact the annual allowance. To maintain the tax-free status of the savings, the new ISA provider must initiate the transfer, rather than you withdrawing the money yourself. If funds are withdrawn directly, they cannot be reinvested as part of the current year’s allowance. When transferring funds subscribed in the current tax year, the entire amount must be moved. For funds accumulated in previous tax years, it is possible to transfer all or a portion of the savings.