Changes to Cash ISA limits

In the November 2025 budget, the UK Government announced a reform of ISAs (Individual Savings Accounts).

From 6th April 2027 the following change will be effective:

The annual Cash ISA limit will be set at £12,000.00 for adults under 65, within the overall annual ISA limit of £20,000.00.*

What does this mean for me?

• The full ISA limit of £20,000.00 per annum is not being reduced.
• The change is to the amount of money that you will be able to deposit into Cash ISA accounts. This will be a maximum of £12,000.00 per annum for adults under 65.
• You may continue to save up to £20,000.00 into Cash ISAs for the 2025/26 and 2026/27 ISA years.
• Money saved into your ISA accounts from previous years (i.e. before the 2027/28 ISA year) will be unaffected by these changes and will continue to earn tax-free interest under the rules of the accounts.
• If you are aged 65 or older then the above change does not apply and you may continue to save £20,000.00 per annum into Cash ISAs, if you so wish.**

For example, from 6th April 2027:

An adult aged under 65 could choose to save £12,000.00 per annum in Cash ISAs and invest a further £8,000.00 per annum in Stocks & Shares ISAs.

They would not be able to save the entire £20,000.00 in Cash ISAs.

*The annual ISA limit of £20,000.00 for adults is set by the UK Government and is subject to change.

** At the time of this article, the ruling for a person turning 65 during the ISA year has not been finalised and is expected to be announced during 2026 following industry consultation. We will provide more information once this has been finalised.

The above information is correct as of 1st December 2025.

The Cumberland does not offer financial advice and would suggest that any persons looking to save or invest take appropriate independent financial advice before doing so.