When does the ISA allowance reset?
You can save up to £20,000 per tax year in an Individual Savings Account (ISA) without paying tax on your interest or investment returns. But when does the ISA allowance reset? Find out in this guide.
Tax treatment depends on individual circumstances and may be subject to change in the future
When is the ISA deadline?
The ISA deadline is the 5th April each year. This is the last day that you can make the most of the current year’s ISA allowance and the tax advantages that come with it. However, try to avoid leaving it until the last minute to max out this year’s allowance.
It can take a few days for ISA providers to process your deposits, meaning any payments you make on the day of the deadline (or even a couple of days before) might not officially reach your account until after the deadline. This could mean the payment will count towards the next tax year’s allowance instead. To be on the safe side, ask your ISA provider which date you’ll need to make any final deposits by to avoid missing the ISA deadline.
When does the ISA allowance reset?
When the clock strikes midnight on the 6th April, the ISA allowance resets. Any unused allowance from the previous tax year will be lost, so you can’t roll over any of last tax year’s allowance into the new tax year. Keep in mind that any deposits processed on or after this date will be deducted from the new tax year’s allowance instead, which will end on the 5th April the following year.
What is the ISA allowance for 2025/2026?
The ISA allowance for the 2025/2026 tax year is £20,000, although this may change in future tax years. It’s up to you whether you deposit the full ISA allowance in one ISA or spread your savings across multiple ISA types. You can save up to £20,000 a year in a Cash ISA, Stocks and Shares ISA or a Fixed Rate ISA, but the Lifetime ISA has a lower annual limit of just £4,000 a year.
Any money you save in a Lifetime ISA will count towards your annual £20,000 ISA allowance. So, if you max out your LISA in the 2025/2026 tax year, you could divide up to your remaining £16,000 allowance across other ISA accounts like Cash ISAs, Stocks and Shares ISAs and Fixed Rate ISAs.
Learn more: Can I have a Cash ISA and a Lifetime ISA?
Save for your first home faster with the market-leading Lifetime ISA
Boost your savings by 25% for free, up to £1,000 each tax year by saving into a Lifetime ISA. Plus, with the Tembo Cash Lifetime ISA your savings will earn our market-leading 4.33% AER (variable) rate. Over 5 years, that's hundreds more added to your house fund in interest vs saving with the nearest competitor.
When considering opening a LISA, remember that withdrawals for any purpose other than buying a first home or for retirement will incur a 25% government penalty, meaning you may get back less than you paid in.
What happens when I’ve used up my ISA allowance?
If you’ve used up your full ISA allowance, you’ll need to wait until the following tax year before making any further ISA deposits. You could place additional savings in a traditional savings or current account, but your interest may be taxed if you exceed your Personal Savings Allowance (PSA).
To learn more about the Personal Savings Allowance, take a look at our guide: Do you pay tax on savings in the UK?
When the ISA allowance resets on the 6th April, you can begin saving or investing in your ISAs once again, whether you make regular contributions throughout the year or pay in a lump sum.
You don’t need to open a new ISA each year, even if you placed the full £20,000 ISA allowance in the same account during the previous tax year. Even so, it’s a good idea to compare multiple ISAs and providers regularly to make sure you’re getting the best deal and a competitive rate.
Which ISA is right for me?
If you’re wondering which ISA to get, here are a few questions to ask yourself.
Do you need easy access to your money?
If you want the freedom to access your money at any time for whatever reason, consider an easy access Cash ISA. With a Tembo Cash ISA, for example, you can dip in and out of your savings as much as you want without paying any penalties.
Are you saving for your first home?
If you’re a first-time buyer, you can supercharge your savings with the help of a Lifetime ISA. Save up to £4,000 of your ISA allowance in your LISA each tax year and the government will boost your savings by 25%, up to £1,000 a year.
You can choose between a Cash Lifetime ISA and a Stocks & Shares Lifetime ISA. If you’re hoping to buy a home in the next few years, it’s usually a good idea to keep your deposit savings in cash. That way, you know your money will be there for you when you need it. A Stocks & Shares Lifetime ISA may be suitable for more long-term goals, such as retirement or a first home purchase several years from now.
Learn more: Cash ISA vs Lifetime ISA. Which one should I pick?
Do you want to invest?
If you’re happy to lock your money away for the long term (say, 5 to 10 years or more) a Stocks & Shares ISA (or Stocks & Shares Lifetime ISA) may offer better returns than a Cash ISA. Your money will be invested, meaning the value of your portfolio can rise and fall over time. While there’s no guarantee you’ll get back what you put in, the stock market usually outperforms savings over the long term.
You might also like our investing beginner's guide.
Past performance is not a reliable indicator of future results. Capital at risk.
Earn 4.64% AER (variable) with our Cash ISA
Save up to £20,000 each year tax-free, without locking your money away. Unlimited withdrawals, no introductory rates, penalties or fees, get started in minutes with just £10.
