Could You Make Better Use of Your ISA Allowances as a Couple?

Being married has many benefits. Tax allowances probably weren’t on your mind on your wedding day, but reviewing your savings together could help you make better use of them.

For married couples and civil partners, ISAs can be a useful place to start.

Making use of both ISA allowances

For the 2026/27 tax year, each eligible adult can pay up to £20,000 into ISAs, where qualifying income and investment gains are sheltered from UK tax. A couple could therefore contribute up to £40,000 between them, provided each has their full allowance available.

These allowances belong to you individually, so each ISA must be held in one person’s name. You cannot transfer your unused allowance to your partner, but you can give them money to pay into their own ISA, provided you’re happy for that money to become theirs.

Transferring investments between spouses

If you hold investments outside an ISA, transferring some to your spouse or civil partner may help you make use of both partners’ tax allowances.

You can usually transfer investments to your spouse or civil partner without paying Capital Gains Tax (CGT) at that point, provided you are living together for tax purposes. This is known as a ‘no gain, no loss’ transfer.

However, any increase in value is carried over with the investment. If your partner later sells it, their gain is generally calculated using what you originally paid for it.

HMRC explains this treatment in its guidance on Capital Gains Tax for spouses and civil partners.

Moving investments into an ISA

‘Bed and ISA’ involves selling investments held outside an ISA and using the proceeds to buy investments within your own stocks and shares ISA. A similar arrangement can involve your spouse buying equivalent investments within their ISA, using money you have given them.

You may still have CGT to pay when you sell the original investments. Paying the proceeds into an ISA does not remove that tax bill, but future qualifying income and gains within the ISA are sheltered from UK tax.

For 2026/27, individuals generally have a £3,000 tax-free allowance for capital gains, officially called the ‘annual exempt amount’. If you have not used any of it, you may be able to make gains of up to £3,000 without paying CGT. This allowance covers your total taxable gains for the tax year, so gains from other sales also count.

It’s easy to confuse the gain you make with the amount you pay into your ISA. They count towards different allowances. For example, if you sell investments for £15,000 that originally cost £12,000, the gain is £3,000. Paying all the proceeds into an ISA uses £15,000 of ISA allowance.

HMRC confirms the treatment of these transactions in its guidance on managing ISA subscriptions. Speak to us before arranging a sale if you are unsure how much of your CGT exemption or ISA allowance remains available.

Could you claim Marriage Allowance?

If one of you earns less than the other, it’s worth checking whether you qualify for Marriage Allowance. This separate relief could reduce your household’s Income Tax bill.

It allows an eligible lower-earning spouse or civil partner to transfer £1,260 of their Personal Allowance to their partner. This can reduce the recipient’s annual tax bill by up to £252.

The lower earner will usually have income below the standard Personal Allowance of £12,570. Their partner must normally pay Income Tax at the basic rate, which usually means income between £12,571 and £50,270.

Different income bands apply in Scotland, where the recipient must pay the starter, basic or intermediate rate.

You transfer a fixed £1,260, regardless of how much unused Personal Allowance you have. This reduces the amount you can earn tax-free yourself and could mean you start paying some Income Tax. Your combined saving may therefore be less than £252.

Speak to us

You may already be making good use of your allowances, or there may be an opportunity you’ve overlooked. At Navigate, we can review your circumstances and explain what any proposed changes would mean for your tax bill.

To discuss your options, call us on 01709 589 439 or book a call with our team.

This article provides general information based on the rules and allowances for 2026/27. It does not constitute personalised tax or investment advice. Tax rules can change. Please speak to us if you would like to understand how the rules apply to you before taking action.