Overview
- From April 2027, the annual cash ISA contribution limit for people under 65 will fall from £20,000 to £12,000, while those aged 65 and over keep the £20,000 cash allowance.
- The overall ISA allowance stays at £20,000, with under‑65s able to put the remaining £8,000 into a stocks and shares ISA, and existing cash ISA balances are unaffected.
- Santander has begun telling under‑65 customers about the rule change and has reminded savers the current tax year ends on 5 April 2026.
- Lightyear CEO Wander Rutgers has called for a single, unified ISA and the removal of restrictions to make moving from cash to investing simpler.
- The Treasury has not signalled support for merging ISA types, indicating a preference for incremental adjustments over wholesale reform.