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Scroll Plus topic · 117 lessons

UK accounts explained: ISAs, Lifetime ISAs, pensions and allowances

UK accounts is the deepest country topic in Scroll: about 100 lessons on ISAs, pensions, allowances and the tax rules that decide which account to use first. It's part of Scroll Plus.

Four lessons are below. Figures are for the 2026/27 tax year; the cash ISA limit changes from April 2027.

Lesson 11m 15s read · level 2

The ISA family: one allowance, four flavours

£20,000 per tax year. Tax-free. Pick wisely.

Allowance£20,000
Tax yearApr–Apr

Every UK adult gets a £20,000 ISA allowance each tax year (April-April). Everything inside grows tax-free, forever. You can split across Cash ISA, Stocks & Shares ISA, Innovative Finance ISA, or Lifetime ISA, but not exceed £20k total.

Try this Open a Stocks & Shares ISA before April. £25 lump sum starts the timer.

Quick check

What happens to unused ISA allowance at the end of the tax year?

Lesson 21m 10s read · level 3

Lifetime ISA: the 25% bonus most miss

Open before age 40. Government adds £1,000 a year to your savings.

Max age to open39
Annual bonus£1,000

A LISA lets you save up to £4,000 per tax year (counts toward your £20k ISA cap). The government adds 25%, up to £1,000 free per year. You can use it for a first home (under £450k) or wait until 60.

Try this If you're under 40 and might buy a flat: open a LISA today, put in £1 to start the clock.

Quick check

What's the penalty for withdrawing from a LISA for a non-qualifying purpose?

Lesson 31m 20s read · level 3

Employer pension match: take it before anything else

Your workplace pension is usually free money. Take it first.

Always do firstMatch
Match return100%

If your employer matches your retirement contributions up to a percentage of salary, that match is the single highest-return move in personal finance. No private account beats a guaranteed 100% return on every contribution. Always max the match before adding to any self-managed retirement account.

Try this Check your workplace pension settings. Are you taking the full employer match?

Quick check

What should you fund first when planning retirement contributions?

Lesson 41m 10s read · level 3

Personal Savings Allowance: tax-free interest tier

Basic-rate taxpayer earns £1,000 interest tax-free. Higher-rate £500. Additional-rate zero. Most savers miss this.

Basic-rate£1,000
Higher-rate£500

Personal Savings Allowance (PSA) lets you earn interest tax-free outside ISA up to limits: £1,000 basic-rate, £500 higher-rate, £0 additional-rate. Applies to interest from savings accounts, current accounts, corporate bonds, P2P. Doesn't apply to ISA (which is already tax-free).

Try this PSA gives £1,000 / £500 / £0 tax-free interest. Above this, ISA is essential. Track interest received vs allowance.

Quick check

How much Personal Savings Allowance does a higher-rate (40%) taxpayer receive each tax year?