What is the ISA allowance in the UK?

The UK ISA allowance for 2026 is £20,000 per tax year. You can split this between Cash ISA, Stocks & Shares ISA, Innovative Finance ISA, and Lifetime ISA. Use our ISA calculator to see how your contributions can grow tax-free over time.

How much can a Stocks & Shares ISA grow?

A Stocks & Shares ISA invested in global equities can grow 7-9% annually. £20,000 invested at 7% for 20 years grows to £77,394. With £200 monthly contributions, it grows to £144,000. All growth is completely tax-free - no capital gains or dividend tax.

What is the difference between Cash ISA and Stocks & Shares ISA?

Cash ISA pays interest like a savings account (3-5% typically). Stocks & Shares ISA invests in the stock market with higher potential returns (7-9%) but also higher risk. Our calculator shows both options. Use your £20,000 allowance wisely based on your risk tolerance.

Can I have multiple ISAs in the UK?

Yes, you can have multiple ISAs (Cash, Stocks & Shares, Innovative Finance, Lifetime). You can contribute to one of each type per tax year, as long as total contributions across all ISAs don't exceed £20,000. Use our calculator to plan your ISA strategy.

ISA Calculator UK - Stocks & Shares ISA Growth Projector

ISA Type	10 Years	20 Years	30 Years
Cash ISA (4%)	£31,000	£58,000	£98,000
Stocks & Shares ISA (7%)	£48,000	£144,000	£360,000
Lifetime ISA (7% + 25%)	£60,000	£180,000	£450,000
Innovative Finance ISA (6%)	£42,000	£118,000	£290,000

📝 Complete Guide to ISAs in the UK

This ISA calculator UK helps you project the growth of your tax-free investments. ISAs (Individual Savings Accounts) are one of the most powerful wealth-building tools available to UK residents, offering completely tax-free growth on your savings and investments.

💰 What is an ISA?

An ISA is a tax-free savings account available to UK residents. Key features:

Tax-Free: No income tax, capital gains tax, or dividend tax
Annual Allowance: £20,000 per tax year (2026)
Flexible: Cash, Stocks & Shares, Innovative Finance, Lifetime
Permanent: Tax-free benefits last forever
Access: Withdraw anytime without tax penalties

📊 ISA Types Explained

Cash ISA: Traditional savings account (3-5% interest)
Stocks & Shares ISA: Invest in stocks, funds, ETFs (7-9% returns)
Lifetime ISA (LISA): 25% government bonus (£4,000 max/year)
Innovative Finance ISA: Peer-to-peer lending (5-8% returns)
Junior ISA: For children under 18 (£9,000 allowance)

📈 UK ISA Statistics (2026)

12M+ UK adults have an ISA
Average ISA balance: £30,000-£40,000
Stocks & Shares ISA are most popular (55%)
Only 30% of UK adults use their full £20,000 allowance
Average ISA return: 6-8% annually
ISA market size: £700B+

💡 Tips to Maximize Your ISA

Use Full Allowance: £20,000 per year tax-free
Start Early: Compound growth works best with time
Stocks & Shares ISA: Higher returns for long-term goals
Regular Contributions: Monthly investing smooths volatility
Reinvest Returns: Let compound growth work for you
Choose Low Fees: Low-cost funds keep more of your money

⚡ ISA Tax Savings Examples

Stocks & Shares ISA: Save 20-45% tax on gains
£100,000 ISA: Save £20,000-£45,000 in tax
Cash ISA: Save 20-45% tax on interest
Dividend ISA: Save 8.75-39.35% dividend tax
Lifetime ISA: Get 25% government bonus (£1,000/year)

⚠️ Important Considerations

Annual Allowance: Use it or lose it (no carry forward for Cash/Stocks ISA)
Risk: Stocks & Shares ISAs can lose money
Fees: Platform fees reduce your returns
Lifetime ISA: 25% penalty for non-qualifying withdrawals
Age Limit: Can't contribute to ISA after age 75

ISA Calculator UK

📊 Your ISA Details

📊 ISA Breakdown

📊 UK ISA Growth Comparison