Overview
- Total ISA allowance remains £20,000, with over‑65s retaining a £20,000 cash ISA limit.
- HMRC guidance outlines proposals to block transfers from stocks and shares ISAs into cash ISAs and to levy charges on cash held inside investment ISAs, with tests for “cash‑like” holdings subject to consultation.
- Martin Lewis explains savers under 65 could put up to £12,000 in cash ISAs and the remainder in other ISA types from 2027, and confirms existing pots can still be moved between providers.
- The Government will increase tax rates on savings interest by two percentage points from April 2027, raising the cost of holding taxable cash outside ISAs.
- Industry data show £207bn sitting in cash ISAs at end‑September 2025 as providers launch products such as Skipton Building Society’s 4% AER account and analysts warn of higher future tax bills for cash-heavy savers.