UK Savings, ISA & Tax Allowances 2026/27: The Complete Reference
A single, source-linked reference for the UK savings and tax allowances that matter in 2026/27 — ISA limits, the Personal Savings Allowance, FSCS protection, Premium Bonds and more.
Allowances and protection limits are the scaffolding of every savings decision — yet they're scattered across a dozen government pages. We've pulled the ones that matter most into a single reference for the 2026/27 tax year, each linked to its official source. Bookmark it.
| Allowance / limit | 2026/27 figure | Notes | Source |
|---|---|---|---|
| ISA allowance | £20,000 | Across all ISA types combined; frozen since 2017/18 | GOV.UK |
| Lifetime ISA | £4,000 + 25% bonus | Counts toward the £20,000; open aged 18–39, pay in to 50 | GOV.UK |
| Personal Savings Allowance | £1,000 / £500 / £0 | Basic / higher / additional-rate taxpayers | GOV.UK |
| Dividend allowance | £500 | Tax-free dividends held outside an ISA | GOV.UK |
| Capital Gains Tax exemption | £3,000 | Annual exempt amount for individuals | GOV.UK |
| FSCS deposit protection | £120,000 | Per person, per banking institution (since 1 Dec 2025) | FSCS |
| FSCS temporary high balance | up to £1.4m | Protected for 6 months (e.g. house sale, inheritance) | FSCS |
| Premium Bonds | £25 – £50,000 | Min / max holding; tax-free prizes, variable prize rate | NS&I |
The £20,000 ISA allowance
You can shelter up to £20,000 a year from tax across all your ISAs combined, and it resets each 6 April (you can't carry it forward). For how to split it between cash and investments, see our guide to Cash ISA vs Stocks & Shares ISA.
The Personal Savings Allowance
Outside an ISA, basic-rate taxpayers can still earn £1,000 of savings interest tax-free each year (£500 for higher-rate, nothing for additional-rate). If your interest sits under that, a top ordinary savings account can beat a Cash ISA — above it, the ISA wrapper starts to earn its keep.
FSCS protection — now £120,000
If an authorised UK bank or building society fails, the Financial Services Compensation Scheme protects your deposits up to £120,000 per person, per banking institution — a limit raised from £85,000 on 1 December 2025. Note that institutions sharing a single banking licence share one limit, so spreading large balances across genuinely separate banks matters.
How to use this page
- Check you're not leaving tax-free allowance unused before the 6 April deadline.
- Keep no more than £120,000 with any one banking institution.
- Use the linked official sources for the fine print — and for any figure that may have changed after this page's last update.
For where different pots of cash should actually live, read where to put your savings.
This guide is general information, not regulated financial advice. Always confirm the latest terms with the provider before you commit.
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