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Saturday, 30 May 2026

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Trending: The Autumn Budget 2025 confirmed the cash ISA limit will fall to £12,000 from April 2027

The 2027 Cash ISA Change: What It Means for Your Savings

From April 2027, savers under 65 will only be able to put £12,000 a year into a cash ISA, down from £20,000. The total ISA allowance stays at £20,000, but the rest must go into investments. Until then, the full £20,000 cash limit still applies.

Last reviewed:  · 2 min read

Key Facts

  • Cash ISA limit drops from £20,000 to £12,000 for under-65s in April 2027
  • Total ISA allowance stays at £20,000 across all types
  • Existing cash ISA balances are unaffected by the change

What's actually changing

Announced in the Autumn Budget 2025, the change caps how much under-65s can put into a cash ISA each year at £12,000 from 6 April 2027. The overall £20,000 ISA allowance doesn't change — but anything above £12,000 will have to go into a stocks and shares, innovative finance or lifetime ISA to stay tax-free.

Savers aged 65 and over keep the full £20,000 cash ISA limit. And crucially, any cash already in an ISA before the change keeps its tax-free status untouched.

Why it's happening and what to do

The government wants to nudge more savers towards investing, arguing too much money sits in low-return cash. Whether that suits you depends on your goals.

If you're saving for something within a few years, the current 2026/27 tax year is your last chance to shelter the full £20,000 in cash. If your money is genuinely long-term, the change may simply push you towards investments you'd have benefited from anyway. Either way, there's no need to panic — your existing savings are safe.

FAQ

Frequently Asked Questions

Do I lose my existing cash ISA savings in 2027? +
No. The change only affects new contributions from April 2027 onwards. Everything already in your cash ISA keeps its tax-free status and isn't touched. You simply won't be able to add more than £12,000 of new money per year into cash if you're under 65.
Should I max out my cash ISA before April 2027? +
If you have savings you want to keep in cash and can spare the money, using the full £20,000 allowance in 2026/27 locks in tax-free status before the cap arrives. But only do this with money you'd genuinely keep in cash anyway — don't stretch your finances just to beat the deadline.
Where does the extra £8,000 go after the change? +
Into a non-cash ISA — a stocks and shares ISA, innovative finance ISA or lifetime ISA — if you want it to stay tax-free. You can still use your full £20,000 allowance; it just can't all sit in cash if you're under 65 from April 2027.

Topics covered

isas cash isa budget 2025

This article is for informational purposes only and does not constitute financial advice. Always do your own research or speak to a qualified financial adviser before making financial decisions.