Stocks and Shares ISA Costs Over Time and Switching

A stocks and shares ISA lets you invest up to £20,000 in 2026/27 with no tax on income or gains (GOV.UK ISA guide). What you pay is platform and fund charges, and small differences add up. On £20,000 over 10 years at an assumed 5% growth, a 0.45% charge leaves £907.15 less than 0.15%.

Tax year 2026/27. Last reviewed 27 October 2026.

We do not rank providers or quote their charges, because those change. For the rules across all ISA types, see our complete UK ISA guide.

Table of Contents

What does a stocks and shares ISA let me do?

The GOV.UK ISA guide says you can save up to £20,000 in the 2026/27 tax year. You can use it all in one account or share it across several. You must be 18 or over and live in the UK, with exceptions for Crown servants and their spouses or civil partners. Income and capital gains from investments in an ISA are tax-free, and you do not declare them on a tax return.

A stocks and shares ISA can hold company shares and funds. Government and corporate bonds are allowed too. You cannot move shares you already own into an ISA unless they come from an employee share scheme. The ISA stays tax-free for as long as the money stays in it.

Your capital is at risk. The FSCS says it can pay up to £85,000 per eligible person, per firm if an authorised firm fails, but it cannot accept claims for poor investment performance.

Which charges will I pay?

The FCA Handbook (COBS 6 Annex 7) splits costs into two groups. One is the cost of the investment service, which includes platform fees and switching costs. The other is the cost of the investment itself, such as a fund’s management fees. A fund held on a platform can carry both.

Charges still apply inside the wrapper. GOV.UK tells you to check your ISA’s terms for charges on withdrawals and transfers. The FCA’s review of investment platform costs lists as good practice showing total costs as a cash amount and as a percentage, and saying whether exit fees apply. Ask for both figures.

Buying shares can carry tax too. GOV.UK says you usually pay 0.5% when you buy UK company shares electronically, but not when you buy fund units from the fund manager. The ISA guide does not mention this duty.

How much do charges cost over 10 and 20 years?

Suppose you put £20,000 into a stocks and shares ISA and add nothing more. We assume investments grow 5% a year before charges. This is an illustration. It is not a forecast, and real returns can differ and may be negative. We take the yearly charge off the yearly growth, so a 0.45% charge gives 4.55% growth.

Yearly charge	Value after 10 years	Value after 20 years	Lost to charges after 10 years
No charge (comparison only)	£32,577.89	£53,065.95	nothing
0.15% a year	£32,115.47	£51,570.19	£462.42 less
0.45% a year	£31,208.32	£48,697.96	£1,369.57 less
1.00% a year	£29,604.89	£43,822.46	£2,973.00 less

Method: £20,000 x (1 + 5% minus the charge) to the power of the years. Each figure was checked year by year and again with logarithms.

The gap between 0.15% and 0.45% is £907.15 after 10 years and £2,872.23 after 20 years. The charge looks small each year, but it comes out of a pot that would otherwise keep growing.

A flat fee works the same way once you turn it into a percentage. Divide the yearly cost by your pot: for example, £60 a year on £20,000 is 0.3%. The example leaves out new contributions and dealing costs, and the 0.5% duty, so your own figures will differ.

How do I check my own figures?

Add the platform’s yearly charge to each fund’s ongoing charge, converting any flat fee to a percentage of your pot. Then work out your pot x (1 + growth minus total charge) to the power of the years, for a low growth rate as well as a high one. Ask whether any exit or transfer fee applies, because that is a one-off cost on top.

How do I move a stocks and shares ISA without losing the tax-free status?

GOV.UK says you can transfer all or part of an ISA to another provider at any time, including savings from earlier years. Contact the provider you want to move to and fill in its ISA transfer form. If you withdraw the money yourself, you cannot put that part of your allowance back.

Transfers other than cash ISA to cash ISA should take no longer than 30 calendar days. If yours takes longer, contact your provider. If you are unhappy with the response, you can take it to the Financial Ombudsman Service. GOV.UK also says providers may restrict transfers and charge for them.

HMRC’s guidance for ISA managers says the investments or the cash can move together or separately, subject to both providers’ terms. The new provider must re-register any investments, and providers are not obliged to accept transfers in. If the new platform cannot hold a fund, it may have to be sold first, and money held as cash is not invested while it waits.

Since 6 April 2024 you can also transfer part of this year’s payments (SI 2024/350).

What tax would I pay on the same investments outside an ISA?

Take the 0.15% case above: £20,000 grows to £32,115.47 and you sell everything after 10 years. The gain is £12,115.47. GOV.UK Capital Gains Tax rates gives a £3,000 tax-free allowance for 2026/27, which leaves £9,115.47 taxable. A higher rate taxpayer pays 24% on that, which is £2,187.71. A basic rate taxpayer whose gain stays inside the basic rate band pays 18%, which is £1,640.78. In an ISA the same sale is tax-free.

GOV.UK gives a £500 dividend allowance for 2026/27, then 10.75% at basic rate, 35.75% at higher rate and 39.35% at additional rate. Say you receive £2,000 of dividends and your Personal Allowance is already used. That leaves £1,500 taxable: £161.25 at basic rate or £536.25 at higher rate. Inside an ISA there is nothing to pay.

What changes for stocks and shares ISAs in April 2027?

The stocks and shares limit stays at £20,000. From 6 April 2027, interest on cash held in a stocks and shares ISA is no longer tax-free. The ISA manager pays a flat 22% charge, the savings basic rate for 2027/28 (Finance Act 2026, section 5; SI 2026/1018). It applies at every age, so cash waiting to be invested or moved is affected. These ISAs also cannot be 100% money market funds. The cash ISA limit changes too: see using your £20,000 allowance.

Frequently asked questions

How much can I put into a stocks and shares ISA in 2026/27?

The GOV.UK ISA guide gives a maximum of £20,000 across all your ISAs in the 2026/27 tax year. You can put all of it into one stocks and shares ISA or split it between accounts. Unused allowance is lost when the tax year ends on 5 April 2027.

How much do ISA charges cost over time?

It depends on the charge and the growth. In our worked example, £20,000 growing at an assumed 5% a year (not a forecast) ends at £32,115.47 after 10 years with a 0.15% charge and £31,208.32 with 0.45%. That is a gap of £907.15, which grows with time.

Can I move my ISA to another provider without losing the tax benefits?

Yes. GOV.UK says to contact the provider you want to move to and complete its ISA transfer form. If you withdraw the money yourself, you cannot put that part of your tax-free allowance back. Transfers other than cash ISA to cash ISA should take no longer than 30 calendar days.

Do I pay tax on a stocks and shares ISA?

No tax is due on income or capital gains from investments in an ISA, and you do not declare them on a tax return (GOV.UK). Outside an ISA, gains above the £3,000 allowance are taxed at 18% or 24%, and dividends above £500 at 10.75% or more.

Is my money protected if the platform fails?

The FSCS can pay up to £85,000 per person, per firm if an authorised firm fails and there is a shortfall in the money or assets it holds for you. It does not cover poor investment performance, so you can still lose money if your investments fall in value.