Overview
- Savers, who face the April 5 tax‑year close, must use any of this year’s £20,000 ISA allowance or lose it, and ISAs shelter interest and gains from tax.
- From April 6, 2027, the Cash ISA cap for people under 65 falls to £12,000 while the overall £20,000 ISA limit stays, with the remaining £8,000 needing to go into stocks and shares or similar investments.
- The Treasury expects the cut to raise about £95 million over five years and to affect roughly 1.3 million savers, a forecast experts say points to many moving surplus cash into taxable accounts.
- Providers are racing to attract deposits with headline rates, including easy‑access offers flagged by Money Saving Expert such as Trading212 at 4.68% for new customers and Plum at 4.66%, plus a new 1‑year fixed Cash ISA at 4.5% from Hargreaves Lansdown.
- Guidance highlights further rule shifts from 2027, including a ban on transfers from stocks and shares ISAs to cash and warnings that interest on cash held inside investment ISAs could face HMRC charges.