Overview
- HMRC has verified that the Lifetime ISA will be replaced by a new product usable only for first‑home purchases, with consultations under way and launch details still unconfirmed.
- Money expert Martin Lewis urges eligible 18–39‑year‑olds to open a LISA and deposit £1 now to start the one‑year clock for the 25% bonus, noting a withdrawal charge that risks roughly 6p on £1.
- From April 2027, the cash ISA allowance for under‑65s will fall to £12,000 within the unchanged £20,000 overall limit, with £8,000 directed to stocks and shares, and tax on savings interest will rise by two percentage points across all bands.
- Bank of England data show a record £57bn flowed into cash ISAs in 2025, with analysts linking the surge to expectations and confirmation of tighter allowances.
- Experts warn that Personal Savings Allowance thresholds can trigger tax on modest balances, with higher‑rate taxpayers busting the £500 limit at around £12,500, prompting calls for careful use of ISAs.