From 6 April 2027, the annual Cash ISA limit will be reduced from £20,000 to £12,000 for individuals aged under 65.
The overall annual ISA subscription limit will remain at £20,000, meaning savers under 65 can still utilise the full allowance by placing the remaining £8,000 into other types of ISAs, such as Stocks & Shares ISAs or Lifetime ISAs.
The Government’s stated aim is to encourage greater investment in UK companies, rather than allowing large sums to remain in low‑return cash accounts.
These changes will not affect those aged 65 and over, who will continue to be able to save up to £20,000 per year in Cash ISAs.
Other ISAs
- Lifetime ISAs: The £4,000 annual limit remains in place until April 2031, though reforms are expected to simplify products for first‑time buyers.
- Junior ISAs & Child Trust Funds: Limits remain unchanged at £9,000 per year until April 2031, ensuring continuity for families saving for children.
If you have any questions about how the budget might affect you, do get in touch on 01242 776000 or tax@randall-payne.co.uk.
