You can open multiple ISAs in the UK, and you can hold more than one of the same type in a single tax year.

For the 2025/26 tax year, the total ISA allowance is £20,000, which you can split between Cash ISAs, Stocks & Shares ISAs, Lifetime ISAs, Junior ISAs and Innovative Finance ISAs in any combination, provided you don’t exceed the relevant annual or individual limits.

ISAs are popular because they protect your savings and investments from Income Tax, Dividend Tax and Capital Gains Tax. While the rules on how many ISAs you can have are relatively straightforward, deciding which types of ISA are most suitable for your circumstances, and how they fit alongside your pensions and other investments, can have a significant impact on your long-term financial planning.

Whether you’re building wealth for the future or approaching retirement, understanding how your ISAs work as part of your overall financial strategy is just as important as understanding the rules.

Key Takeaways

  • Annual ISA Allowance: For 2025/26, you can invest up to £20,000 across any combination of ISAs.
  • Multiple ISAs since April 2024: You can open more than one ISA of the same type in the same tax year, using different providers.
  • Tax Benefits: ISAs shield your savings and investments from Income Tax, Dividend Tax, and Capital Gains Tax (within your allowance).
  • Specific ISA Limits: Junior ISA allowance is £9,000/year; Lifetime ISA limit is £4,000/year with a 25% government bonus.
  • Transfers: You can transfer ISAs between providers (full amount if from the current tax year, part or full from previous years).
  • Death Benefits: ISAs keep their tax advantages until closed, and a spouse/civil partner can inherit the allowance tax-free.

Last updated: 15th July 2026

About The Author
Tony Thomas is a Chartered Financial Planner, Pension Specialist and Money Coach with over 30 years’ experience helping individuals and families build secure, tax-efficient retirement plans.

Over the past three decades, he has helped hundreds of clients navigate pensions, ISAs, retirement income and complex tax rules, giving them the confidence to make informed financial decisions. Tony’s practical, straightforward approach focuses on creating retirement strategies that are tailored to each client’s goals and circumstances.

1) What is an ISA Investment?

If you are a UK resident, Individual Savings Accounts (or ISAs) are a tax-efficient way to save. As long as you keep within your ISA allowance each year, your money is shielded from:

  • Income Tax

  • Tax on dividends

  • Captial Gains Tax

More information can be found on gov.uk

2) How Many ISAs Can I Have?

Each year the Government sets a tax free ISA allowance. The total personal ISA allowance, for the present tax year (2025/2026) is £20,000.

There are several different types of ISA, which you choose will depend on eligibility criteria along with your individual circumstances, attitude to risk and your financial goals.

How many ISAs and the sum of money you invest each year, in whatever combination you decide to invest it (e.g. Cash ISA, Stocks & Shares ISA, Innovative Finance ISA etc) must not exceed your full ISA allowance for that same tax year.

Since 6th April 2024, you are able to open multiple ISAs of the same type in a single tax year, using different isa providers. This means you can take advantage of better deals as they come onto the market, making your tax free savings work harder for you.

There are also a few specific limits that apply to certain types of ISA. For example, the maximum annual contribution to a Junior ISA for 2025/2026 is £9,000 per child, no matter where the contributions come from.

3) Types Of ISA

  • Cash ISAs

    Under the current rules (as at April 2025) you can pay into a Cash ISA account from the age of 18. (This was increased from 16 from 6th April 2024).

    A Cash ISA is similar to a normal savings account, except no tax is payable on the interest you earn. You can make a single or regular contributions as long as you keep within the annual ISA allowance and the return on your investment will depend on whether you want instant access or are prepared to lock your money away for a fixed term.

  • Stocks and Shares ISAs

    Also known as investment ISAs, stocks and shares ISAs are a tax efficient way to invest in wide variety of stocks and shares including equities, bonds or commercial property. You can choose to invest in a ready made ‘fund’ or research and select your own shares to buy.

    Important Note: Whilst a Stocks and Shares ISA has the potential for higher growth than a standard Cash ISA, the risk is also higher as the value of stocks and shares can go up as well as down.

  • Junior ISAs

    Specifically for children under the age of 18, maximum annual alowance (as at 2023/2024) £9,000 per child.

    Grandparents / Parents often choose to open a Junior ISA as the child cannot touch the money until they reach 18. The investment can be in the form or cash, or stock & shares. Once the child reaches 18, it will convert into a standard ISA.

  • Lifetime ISAs

    A Lifetime ISA can be opened by anyone over 18 up to the age of 40. Maximum annual allowance (as at 2025/2026), £4,000.

    Designed to help you save your first home or for your retirement. Contributions can be made until you reach 50, but withdrawals, without penalty, can only be made to buy your first home, or which you reach 60.

    The Goverment add a 25% bonus to your savings up to a maximum of £1,000 each year (on a monthly basis), until your reach 50.  Again, the investment can be in cash or stocks and shares.

  • Innovative Finance ISA

    This type of ISA allows individuals to make peer-to-peer lending investments within a tax-free wrapper.
    So you’re able to invest in peer-to-peer lending platforms without paying capital gains tax on your returns.

    If you invest in P2P lending you may get a better interest rate than through a high street bank savings account. But the risks are greater, too. If the ‘peer’ you lend to doesn’t perform as expected, you could bear the brunt of any losses, and those losses are final if they default on a payment.

    Liquidity can also be an issue if you want to withdraw money before the end of the term of the loans you’ve made.

    Innovative Finance ISAs aren’t currently backed by the Financial Services Compensation Scheme (FSCS), so you may want to approach these ISAs with caution.

  • The Help to Buy ISA

    The Help to Buy ISA was a type of cash ISA. It was a government scheme to help first-time homebuyers save for a mortgage deposit to buy a home. The scheme closed to new accounts at midnight on 30 November 2019.

Many people build up several ISAs over the years, but never review how they fit alongside their pensions and other investments.

If you’re approaching retirement, understanding how to turn your savings into a reliable, tax-efficient income can be just as important as understanding the ISA rules.

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4) Accessing or Transferring ISAs

Can I transfer or consolidate my existing ISAs?

Yes, you can transfer money from one ISA to another as long as it is allowed within the product terms and conditions.

Note: Transfers from investments made in previous years can be done in part or full, whereas isa transfers from any money invested in the current tax year, must be for the full amount.

What happens to ISA funds if I die?

ISAs retain their tax benefits after you die, until they’re closed. An added benefit is that your spouse or civil partner can inherit the value of your ISA as a one-off additional tax-free allowance.

If no spouse or civil partner, your ISA will end when either:

– your executor closes it

– the adminstration of your estate is completed

– Otherwise, your ISA provider will close your ISA 3 years and 1 day after you die.

There will be no Income Tax or Capital Gains Tax to pay up to that date, but ISA Investments still form part of your estate for Inheritance Tax purposes.

When can I access my money and do I pay tax on ISA withdrawals?

ISAs allow you to withdraw money from an ISA at any time, without losing any tax benefits.  The exception to this rule is the Lifetime ISA as your money can only be withdrawn to make a first time house purchase, or if you are saving for retirement, when you reach 60.

In order to attract a higher rate of return, some ISAs tie your money up for a specific period of time. You will need to check your providers Terms and Conditions to see if there are any access penalties and/or fees.

In Summary

Ready to Make the Most of Your ISA Allowance?

ISAs can be a powerful, tax-efficient way to grow and protect your wealth, but the best approach depends on your goals, risk appetite, and timeline.

Book your free 30-minute consultation today to:

  • Understand which ISA types suit your needs
  • Optimise your contributions and tax benefits
  • Create a plan aligned with your overall financial strategy

Click the button below, or contact Tony Thomas on 07585 592494 / tony@ttwealth.co.uk to get started.

Frequently Asked Questions

Can I open more than one ISA in a tax year?

Yes. Since 6 April 2024, you can open and pay into multiple ISAs of the same type in a single tax year, provided your total contributions across all ISAs do not exceed the annual allowance.

What is the ISA allowance for the current tax year?

For the 2025/26 tax year, the allowance is £20,000. This can be split across different ISA types in any proportion you choose.

Do I pay tax when I withdraw money from an ISA?

No, withdrawals from an ISA are tax-free. However, Lifetime ISAs have withdrawal restrictions and may incur a penalty if the money is not used for a first-home purchase or taken after age 60.