UK ISA Calculator 2024-25

What is the ISA allowance for 2024/25?

In 2024/25 the annual ISA allowance is £20,000 per person. This is the total you can put across all your ISAs in a single tax year (6 April to 5 April). You can split the allowance between different ISA types — for example £10,000 in a Stocks & Shares ISA and £10,000 in a Cash ISA. The Lifetime ISA (LISA) has its own separate allowance of £4,000 per year, which counts towards the overall £20,000 ISA limit. Junior ISAs (JISAs) for children have a separate allowance of £9,000 per year. Unused ISA allowance cannot be carried forward to the next tax year.

What is a Lifetime ISA and who should use one?

A Lifetime ISA (LISA) is a tax-advantaged savings account for UK residents aged 18–39. You can contribute up to £4,000 per year and the government adds a 25% bonus on top — worth up to £1,000 per year. The money can be used for two purposes: buying your first home (property must be £450,000 or less) or retirement from age 60 onwards. If you withdraw the money for any other reason before age 60, you pay a 25% withdrawal penalty — which effectively returns the bonus and charges you a further 6.25% penalty on your own contributions. LISAs are ideal for first-time buyers saving for a deposit or younger savers who want a bonus on top of their pension savings.

Stocks & Shares ISA versus Cash ISA — which is better?

The choice between a Stocks & Shares ISA and a Cash ISA depends mainly on your investment horizon and risk tolerance. Cash ISAs are low risk and provide guaranteed returns (currently 4–5% with competitive providers), making them suitable for short-term savings or emergency funds. Stocks & Shares ISAs invest in the stock market, historically returning around 7–9% per year over the long term (before charges), but with year-to-year volatility including potential losses. For goals more than 5 years away — such as retirement or a house purchase a decade hence — a Stocks & Shares ISA typically produces significantly better returns. For money you may need within 1–3 years, a Cash ISA protects you from having to sell at a loss. Many investors use both: a Cash ISA for short-term savings and a Stocks & Shares ISA for longer-term growth.

Can I have multiple ISAs at the same time?

Yes. Since the 2024/25 tax year you can subscribe to multiple ISAs of the same type in a single tax year — a rule change from previous years when you could only open one of each type per year. However, your total contributions across all ISAs must not exceed the £20,000 annual allowance (£4,000 if you also use a LISA). If you transfer money between ISAs using an official ISA transfer, it does not count towards the annual allowance. It is important to use the ISA transfer process when moving money between providers — withdrawing cash and redepositing will use up your current year allowance.