With the end of the UK tax year (5 April) drawing near, now’s a great time to review your savings and make sure you’re maximising your tax-efficient opportunities. One of the easiest ways to do this is by fully utilising your Individual Savings Account (ISA) allowance. You also need to be aware of changes on the horizon.
Why your ISA allowance matters
ISAs offer tax-free growth, meaning you won’t pay tax on interest, dividends or capital gains. For the current tax year (2025/26), you can contribute up to £20,000 across all ISA types. But remember – you lose any unused allowance once the tax year ends on 5 April.
What’s changing?
There are some changes afoot to be aware of. The government plans to scrap the Lifetime ISA (LISA) and replace it with a simpler product.
Looking ahead, from 6 April 2027 the ISA landscape will change for many savers under age 65, with the cash ISA limit reduced to £12,000 and £8,000 earmarked for investments – part of broader reforms to simplify and rebalance the ISA system.
How to maximise your ISA contributions
Here are the key steps to ensure you make the most of this year’s ISA allowances:
1. Check where you are so far
Start by reviewing how much you’ve already contributed across your ISAs this tax year. If you’ve not yet hit the £20,000 ceiling, you still have time to add more before 5 April.
Tip: The £20,000 limit covers all ISA types combined, so if you’ve already put cash into one account, you’ll need to work out how much space is left in other types.
2. Think about a Stocks and Shares ISA
If you’re comfortable with some investment risk and are planning for the long term, a Stocks and Shares ISA could offer stronger potential growth than a Cash ISA.
These accounts let you invest in shares, funds and bonds. All dividends, gains and income remain tax-free. Consulting with an adviser at S4 Financial can help align your investments with your goals and risk tolerance.
3. Be aware of the future of the Lifetime ISA (LISA)
The government has announced plans to replace the Lifetime ISA (LISA) with a new, simpler savings product aimed at helping first-time buyers — following a consultation planned for early 2026. This signals that the current LISA is likely to be phased out and superseded by a different product.
Under current rules, you can contribute up to £4,000 per year into a LISA and receive a 25% government bonus — up to £1,000 — if used for buying your first home or for later life. However, these accounts may not remain available in their current form once the replacement is introduced.
What that means for you: If you currently hold a LISA or plan to start one, make sure you understand how any future changes might affect your strategy and timing.
4. Don’t forget Junior ISAs (JISAs)
If you’re saving for a child’s future, Junior ISAs (JISAs) are another powerful tax-efficient tool. For the 2025/26 tax year, each child has a £9,000 annual JISA allowance that can be split between a Cash JISA and a Stocks and Shares JISA.
- Anyone – parents, grandparents, friends – can contribute to a child’s JISA, but only a parent or legal guardian can open the account
- The JISA allowance is separate from your own ISA allowance — so you can contribute up to £20,000 to your ISA while also contributing up to £9,000 into your child’s JISA in the same tax year
- Funds in a JISA are tax-free and usually accessible by the child when they turn 18.
Acting before 5 April ensures you don’t lose any of the annual JISA allowance too.
5. Spread your allowance across ISA types
You don’t need to put all £20,000 into one account. Splitting your allowance, perhaps between Cash ISAs, Stocks and Shares ISAs and JISAs, lets you balance safety and growth depending on your plans and risk appetite.
6. Use your partner’s allowance too
If you’re married or in a civil partnership, each of you has your own ISA allowance. By both contributing the maximum before the deadline, you could potentially shelter £40,000 tax-free.
This can be particularly useful if you’re saving together for a house, retirement or other long-term goal.
7. Plan ahead, avoid the rush
Leaving ISA contributions to the last minute can lead to hurried decisions or missed deadlines. Start planning early, set reminders and speak to a financial planner at S4 Financial to ensure everything is set up in time.
The bottom Line
Making the most of your ISA allowance before the tax year ends is one of the simplest ways to boost your long-term savings while keeping more of your money tax-free.
✔ Review how much you’ve already contributed
✔ Explore different ISA types (Cash, Stocks and Shares, JISA)
✔ Use your own and your partner’s allowances
✔ Plan ahead and act before 5 April.
If you’re unsure about the best approach, the team at S4 Financial can help you create a strategy that aligns with your personal goals. Get