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At a glance:
From 6 April 2027, the Cash ISA allowance falls from £20,000 to £12,000 for savers under 65.
If you’re 65 or over, there will be no change to your ISA allowance. 

What is going to change?

From 6 April 2027, the way you can use your annual ISA allowance will change if you’re under 65.

 

Your total ISA allowance will stay at £20,000, but you won’t be able to put the full amount into a Cash ISA anymore. Instead:

You’ll be able to save up to £12,000 each tax year into a Cash ISA.
The remaining amount within the £20,000 overall limit can still be used in other ISA types such as Stocks and Shares ISAs.
The total allowance for ISAs remains £20,000 (£4,000 for Lifetime ISAs).
If you’re 65 or over, these changes don’t apply. You’ll be able to save the full £20,000 into a Cash ISA if you choose to.

What could the changes to the Cash ISA limit mean for you?

The impact of the new Cash ISA limit will depend on how you normally save, and whether you’re under or over 65.

If you’re under 65 and usually save the full £20,000

You may earn less tax free interest each year from Cash ISAs, simply because you will not be able to put as much into a Cash ISA. This change will mainly affect savers who regularly use their full ISA allowance every tax year.

If you save less than £12,000 a year

You may not notice any difference. Many savers do not max out the full £20,000 allowance, so the reduced Cash ISA limit may not impact you.

If you’re 65 or over

There’s no change to your Cash ISA allowance. You’ll still be able to save up to £20,000 a year into a Cash ISA if you choose to.

You may want to spread your allowance across different savings or investments

You may want to spread your allowance across different savings or investments. 


Because only £12,000 can go into a Cash ISA (for those under 65), some savers may consider using other types of ISAs for the remaining allowance - for example, a Stocks & Shares ISA.

 

You could also choose to save your money elsewhere in a different type of saving account.

The content on this page is for reference. It is not financial advice. For help with money issues, try MoneyHelper.

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