Government changes to cash ISA limits
Your total annual ISA allowance will still be £20,000, but the way you can use it will change for those under 65:
- You’ll be able to put up to £12,000 in a cash ISA each tax year.
- The rest – up to £8,000 – could go into a stocks and shares ISA.
- Or, you can choose any combination that suits you, as long as you don’t exceed £12,000 in a cash ISA and your total across both types of ISAs doesn’t go over the £20,000 total ISA allowance.
- The annual limit for stocks and shares ISAs remains at £20,000.
- For those aged 65 or over, these changes don’t apply. The full £20,000 annual ISA allowance will remain, which can be used across all ISAs.
The changes only apply to new contributions from 6 April 2027 onwards, so you still have this tax year and the next to save up to £20,000 in a cash ISA tax free, if that’s right for you.
Any money already saved in your cash ISA from this year or previous years, should stay protected and continue to earn tax-free interest.
No changes have been made to the Junior ISAs allowance, which remains at £9,000 each tax year per child.
Separate to the changes announced for ISAs, from April 2027, the income tax you pay on interest received from savings, (over your personal savings allowance and outside of ISAs) will increase to 22% for basic-rate taxpayers, 42% for higher-rate taxpayers and 47% for additional-rate taxpayers.
