Cash ISA Allowance Change from April 2027

You may have heard about the change to the Cash ISA allowance which was announced in the recent Autumn Budget 2025. This may affect how you plan your savings in future years. We’ve pulled together a quick guide on what’s changing, when it takes effect, and what it may mean for you.

What’s changing?

Although the overall ISA limit remains at £20,000, those under 65 will only have a Cash ISA annual allowance of £12,000 from April 2027. The remaining £8,000 can only be invested in a stocks and shares ISA.

Aged 65 or over on 6 April 2027? There is no change and the Cash ISA allowance will remain at £20,000.

Aged 64 or under on 6 April 2027? Your Cash ISA limit will fall to £12,000. 

Remember, this change only applies to new contributions you make from 6 April 2027. It won’t have any impact on savings you’ve already paid into a Cash ISA to this date.

Are other ISA types affected?

No. Junior ISA and Child Trust Fund allowances remain unchanged at £9,000 a year, and will stay at this level until at least 5 April 2031.

Can I still use this year’s Cash ISA allowance?

Yes. The current £20,000 Cash ISA allowance is available until 5 April 2026, and will also remain in place for the 2026/27 tax year.

The new £12,000 limit for those under 65 begins 6 April 2027.

Are ISA transfers affected?

No. You can continue to request ISA transfers as usual, regardless of the amount (subject to product terms and conditions).

What other options do I have?

While the changes don’t come into effect until 6 April 2027, you may also want to review other available savings options, such as:

Bonds for lump-sum savings

Notice accounts if you prefer some access to your savings

Regular Saver accounts if you prefer to save monthly.

Please keep in mind that the tax treatment of the above options will depend on your individual circumstances. For more information on your allocated Personal Savings Allowance, refer to the government website, or speak to a financial advisor.