Overview
- From April 2027, savers under 65 can put a maximum of £12,000 into Cash ISAs each year as the overall £20,000 ISA allowance remains in place.
- The remaining allowance must be held in stocks and shares ISAs, and existing cash ISA balances will not be affected.
- People aged 65 and over are exempt from the new cash cap and keep the current arrangements.
- Proposed anti‑circumvention steps include a charge on interest earned on cash held inside stocks and shares or Innovative Finance ISAs, transfer bans, and new tests to stop ‘cash‑like’ holdings.
- The Treasury says regulations and a Tax Impact and Information Note will be published in the spring, as Martin Lewis warns the scope and timing of the new charge on cash held within investment ISAs remain unspecified.