Answers · UK 2025/26
Can I contribute to both an ISA and a SIPP in the same tax year?
Yes. An ISA and a SIPP are completely separate wrappers. You can contribute up to £20,000 to ISAs and up to 100% of your earnings (or £60,000, whichever is lower) to a SIPP in the same tax year. The SIPP gets 20% tax relief automatically; higher-rate taxpayers claim an extra 20–25% via Self Assessment.
Full answer
**Yes — absolutely.** A Stocks & Shares ISA, Cash ISA, or any other ISA and a Self-Invested Personal Pension (SIPP) are completely separate tax wrappers with independent contribution limits. Maxing both is one of the most tax-efficient strategies available to UK savers. **ISA limits (2026/27):** - **Annual ISA allowance:** £20,000 - Types: Cash ISA, Stocks & Shares ISA, Innovative Finance ISA, Lifetime ISA (up to £4,000 within the £20,000) - **Tax treatment:** contributions from after-tax money; growth and withdrawals completely tax-free - **Access:** no restrictions on withdrawals (except LISA — 25% penalty if not used for first home or retirement) **SIPP limits (2026/27):** - **Annual Allowance:** £60,000 (or 100% of relevant UK earnings, whichever is lower) - **Tax relief:** 20% added automatically by the SIPP provider (relief at source); higher-rate taxpayers claim 20% more via SA; additional-rate taxpayers claim 25% more - **Access:** from age 57 (rising from 55 in 2028) - **IHT advantage:** SIPPs are generally outside your estate for Inheritance Tax purposes **Comparison table:** | Feature | ISA | SIPP | |---|---|---| | Annual limit | £20,000 | £60,000 (or 100% earnings) | | Tax relief on contributions | No | Yes (20–45%) | | Tax on growth | No | No | | Tax on withdrawal | No | Yes (except 25% TFLS) | | Access age | Any time | 57 (from 2028) | | IHT treatment | In estate | Outside estate (generally) | **Optimal combination strategy:** - Use **SIPP first** if you pay higher-rate (40%) or additional-rate (45%) tax — the tax relief is immediate and valuable - Use **ISA** for money you may need before age 57 (bridging income, house deposit, emergency fund) - Fill ISA allowance each April to compound tax-free growth over time **Carry-forward (SIPP only):** You can carry forward unused annual allowance from the three previous tax years, allowing SIPP contributions above £60,000 in a single year (must have been a pension scheme member in those years). **Money Purchase Annual Allowance (MPAA):** If you have already flexibly accessed a defined contribution pension (e.g. taken drawdown income), the MPAA of £10,000 applies to future pension contributions — seek advice before combining ISA and SIPP strategies.
Try the calculator
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.