Answers · UK 2025/26
Do unused ISA allowances roll over to the next tax year in the UK?
No -- the £20,000 ISA allowance does not roll over. Any unused portion is lost when the tax year ends on 5 April. The one exception is Flexible ISAs: amounts withdrawn in the same tax year can be resubscribed without using additional allowance, but only within the same tax year.
Full answer
The ISA annual subscription limit is a use-it-or-lose-it allowance that resets on 6 April each tax year. The rule: - The annual ISA allowance for 2026/27 is £20,000. - If you contribute only £8,000 during the tax year, the remaining £12,000 allowance is permanently lost when the tax year ends on 5 April 2027. - It does NOT carry forward to 2027/28. Why it works this way: - Each tax year's allowance is independent. The rules were designed this way to encourage consistent saving rather than accumulating large one-off contributions. The Flexible ISA exception: - Some ISA providers offer Flexible ISAs. - With a Flexible ISA, if you contribute £20,000 and then withdraw £5,000, you have £5,000 of subscription space remaining in that tax year (not the next year). - This flexibility allows you to use your ISA more like a current account while retaining the tax-free wrapper. - Not all ISA providers offer flexible ISAs -- check with your provider. Lifetime ISA: - The Lifetime ISA allowance is £4,000 per year (within the overall £20,000). Unused LISA allowance also does not roll over. Junior ISA: - The Junior ISA allowance is £9,000 per year. Also does not carry over. Inherited ISA allowance (APS): - When a spouse or civil partner dies, the surviving partner receives an Additional Permitted Subscription (APS) equal to the deceased's ISA balance at death. This IS separate from the normal annual allowance and can be used in the years following death (within specified timeframes -- usually 3 years).
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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.