In more detail
- Example: you pay £20,000 into a cash ISA and it earns £800 interest. You’ve used £20,000 of your allowance, not £20,800, and the £800 is tax-free.
- Taking money out: in most ISAs, money you take out still counts as used. In a flexible ISA you can take money out and put it back in the same tax year without using more allowance. Check with your provider.
- From 6 April 2027: under-65s can only pay £12,000 a year into cash ISAs. Interest still doesn’t count.
Related questions
- Will my pension be taxed when I die?
- How much can I put in a cash ISA?
- How much tax do I pay on savings interest?
- Do landlords need Making Tax Digital?
See everything that’s changing in April 2027.
Sources
Last checked against GOV.UK: 9 October 2026