Overview
- The current £20,000 annual ISA allowance remains available through the 2026/27 tax year before the change takes effect.
- Under the new structure, up to £12,000 can be placed in cash each year and the remaining £8,000 is limited to investment ISAs for those under 65.
- Starling Bank cautioned that a likely rush to shift funds ahead of the deadline could expose savers to investment scams.
- Tesco Bank research indicates most cash ISA holders have not used their full allowance this year, with average usage around £8,129.
- Financial planners advise keeping an emergency cash buffer and using small, regular contributions to build diversified investments over time.