City AM’s 2026 ISA guide

Welcome to City AM’s comprehensive 2026 ISA Guide.

The Individual Savings Account (ISA), introduced in 1999, is a cornerstone of UK personal finance, offering tax-free growth and income for investors.

With five core variants, Cash, Stocks and Shares, Innovative Finance (IFISA), Lifetime (LISA), and Junior (JISA), investors can shelter up to £20,000 annually from the tax collector.

This allowance is a crucial tool, especially as the UK tax burden is projected to hit a record high of 38 per cent of GDP by the end of the decade.

However, over the next two years, there are going to be some major changes to the ISA landscape.

This guide is designed to help you navigate the changes while making the most of your annual allowance.

The most significant upcoming change is the reduction of the Cash ISA allowance from £20,000 to £12,000 for under-65 savers starting in April 2027, a policy aimed at redirecting capital towards UK equities.

The document explores the debate between Cash ISAs (best for short-term goals under three years or emergency funds) and Stocks and Shares ISAs (better for long-term growth).

It details how HMRC is still finalising rules to prevent investors from circumventing the new cash limit, potentially by introducing an interest charge or a ‘cash-like’ test on money market funds held within Stocks and Shares ISAs.

It also covers specialised wrappers like the high-risk Innovative Finance ISA (IFISA) and the Junior ISA (JISA), a popular tool for generational wealth transfer.

The guide is also designed to help you pick and choose investments and platforms, whether you want to use a robo advisor or manage your money yourself.

Read below or download your copy today. Download here.