UK 2028 ISA Allowance
UK 2028-29 ISA: £20,000 total allowance. LISA £4,000/year with 25% govt bonus = £1,000 free if under 40 + house purchase or 60+ retirement use.
| Cash ISA | — |
| Stocks & Shares ISA | — |
| Lifetime ISA | — |
| LISA bonus (25%) | — |
| Innovative Finance ISA | — |
| Total used | — |
The UK 2028-29 ISA allowance is £20,000 total across all ISA types. Cash ISA, Stocks & Shares ISA, Innovative Finance ISA, and Lifetime ISA all draw from the same pool. LISA capped at £4,000/year with 25% government bonus (£1,000) — must be under 40 to open, withdraw at 60+ retirement or for first home purchase under £450,000.
ISA Tax Benefits
All gains and income inside an ISA wrapper are tax-free: no capital gains tax, no dividend tax, no income tax on interest. Withdrawals tax-free too. Maximum value built up over 25+ years can shelter substantial wealth.
LISA Bonus Mechanics
£4,000 max contribution = £1,000 government bonus (25%). Open before 40, contribute until 50. Withdraw for: (a) first home purchase under £450k or (b) age 60+ retirement. Other withdrawals incur 25% penalty on full amount = loss of bonus + 6.25% on own contribution.
Multiple Provider Reform 2024
From April 2024, you can open multiple ISAs of the same type with different providers in the same tax year. Previously limited to one Cash + one S&S etc per tax year. Big shift — easier to chase best rates without waiting for next tax year.
Last updated May 2026. Sources: HMRC ISA.