- Why an ISA — the shrinking allowances that make the wrapper matter
- The £20,000 allowance and the four types of ISA
- Cash versus stocks and shares — the real decision
- The April 2027 change — what happened to the cash-ISA cap
- The Lifetime ISA — the 25% bonus, and the penalty trap
- Junior ISAs — a tax-free head start for children
- Keeping costs low — the fees that compound against you
- Building a portfolio you can actually stick with
- Flexible ISAs and transfers — the mechanics people get wrong
- Bed and ISA — sheltering investments you already hold
- Common and costly mistakes
- Your ISA action plan
- Sources & further reading
Here's one of the Playbook's core sections in full — so you can see exactly how it reads before you buy. We follow one example throughout: Sam, 32, a higher-rate taxpayer with about £15,000 saved, wanting to keep some money safe, save toward a first home, and start investing for the long term.
4The April 2027 change — what happened to the cash-ISA cap
This was the change worth planning around, and it is not happening. The amount most people could put into a Cash ISA each year was due to be cut from £20,000 to £12,000 from 6 April 2027. Budget 2026, on 28 October, dropped it. The Budget document says the government “has decided not to reduce the cash ISA limit, so that it remains at £20,000” — and that applies at any age. So the overall allowance is £20,000, the Stocks & Shares limit is £20,000, and the cash limit is £20,000 too.
- Whatever your age, from 2027/28 you can still put the whole £20,000 into cash ISAs if that is what suits you. The age split that was planned has gone along with the cut.
- What did change is outside the wrapper: from 6 April 2027 savings interest held outside an ISA is taxed at 24%, 44% and 49% — four points above today's 20%, 40% and 45%. The wrapper is worth more than it was, not less.
For this tax year (2026/27), nothing changes — Sam can still put the full £20,000 in a Cash ISA. From 2027/28 that is still true, because the cap was dropped…
What a big cash saver does face is the higher tax on anything held outside the wrapper from April 2027, which is where the £20,000 allowance earns its keep…
Read the rest — the Lifetime ISA trap, keeping costs low, and transfers done right
The full 15-page Playbook covers the £20,000 allowance and the four ISA types, cash vs stocks & shares, what Budget 2026 changed for April 2027, the Lifetime ISA's 25% bonus and penalty trap, Junior ISAs, keeping platform and fund fees low, building a simple portfolio, flexible ISAs and transfers, Bed and ISA, and a step-by-step action plan.
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How much can I put into an ISA in 2026/27?
You can put up to £20,000 into ISAs in the 2026/27 tax year (6 April to 5 April). It's a use-it-or-lose-it allowance — whatever you don't use by 5 April doesn't carry over. The £20,000 is shared across all four types of ISA, and since April 2024 you can pay into more than one ISA of the same type in a single year, as long as your total stays within £20,000. A Junior ISA has its own separate £9,000 limit.
What is changing with cash ISAs in April 2027?
Nothing — the planned cut was dropped at Budget 2026 on 28 October, so the cash ISA limit stays at £20,000 at any age. The overall allowance stays at £20,000 and the Stocks & Shares limit stays at the full £20,000 — only the cash portion is capped. If you're 65 or over you keep the full £20,000 cash limit. New anti-circumvention rules also stop people parking cash inside a Stocks & Shares ISA to get around the cap. The Playbook explains what it means and how to plan for it.
Should I choose a Cash ISA or a Stocks & Shares ISA?
It's really a question about time, not nerve. A Cash ISA keeps your capital safe and pays tax-free interest — good for money you might need soon or can't afford to see fall. A Stocks & Shares ISA can rise and fall but has historically outgrown cash and inflation over long periods, so it suits money you won't need for many years. The deciding question is when you'll need it. Holding too much in cash for a very long horizon carries its own risk from inflation. This is general information, not a recommendation.
How does the Lifetime ISA work, and what's the penalty?
You can open one before you turn 40 and pay in up to £4,000 a year (within your £20,000 allowance) until 50. The government adds a 25% bonus — up to £1,000 a year. You can use it penalty-free to buy a first home costing £450,000 or less (if open at least 12 months), or from age 60. Take money out for any other reason and there's a 25% withdrawal charge — and because it applies to the balance including the bonus, you can get back less than you put in. The Playbook works the trap through with numbers.
Do ISA fees really make a difference?
Yes — more than most people expect. There are usually two layers: the platform fee and the fund charge. Small percentage differences compound over decades. On a £20,000 lump sum growing at 5% a year for 30 years, paying total costs of 1.25% a year instead of 0.25% can leave roughly £20,000 less — close to a quarter of the pot — purely in fees. Cost is one of the few things you control directly.
How do I move an ISA without losing the tax break?
Always use the provider's official ISA transfer process — never withdraw the money and pay it into the new ISA yourself. Withdrawing strips the money of its ISA status, and re-paying it uses up fresh allowance. A proper transfer keeps the tax-free status intact and doesn't touch your £20,000. You can transfer previous years' money in full or in part, but money paid in during the current year must be transferred as a whole.
Is this financial advice?
No. It's general information for the 2026/27 tax year to help you understand how ISAs and tax-efficient investing work — not personal advice or a recommendation to buy any investment, and investments can fall as well as rise so you may get back less than you put in. Confirm current rules at gov.uk, and take qualified, regulated advice before acting.
Can I get it for free? Which tax year?
Every WealthR Playbook can be read online in-app with WealthR Pro (£39.99/year), along with all the tools and future editions kept current each tax year. Or buy this Playbook on its own for £19.99 as a PDF that's yours to keep. It covers the 2026/27 UK tax year, published July 2026, including the government's detail on the April 2027 cash-ISA reform.