Overview
- Government guidance confirms the 2025/26 ISA allowance remains £20,000, which can be placed in one account or split across Cash, Stocks and Shares, Lifetime, and Innovative Finance ISAs between 6 April and 5 April.
- A two‑tier structure confirmed at the Autumn Budget 2025 will take effect on 6 April 2027, limiting under‑65s to £12,000 in Cash ISAs and requiring up to £8,000 to go into investment ISAs, with those aged 65+ exempt.
- Treasury minister Lucy Rigby, responding to Labour MP Gill Furniss on Help to Buy ISA limits, said savings policy is kept under review and any further changes would be announced at a fiscal event.
- Help to Buy ISAs are closed to new accounts and can only be used on properties up to £250,000 outside London or £450,000 in London, while Lifetime ISAs allow up to £4,000 a year with a 25% bonus for eligible first‑time buyers subject to a £450,000 property cap and withdrawal penalties.
- Since April 2024 savers have been able to open more than one Cash ISA in the same tax year provided total contributions stay within £20,000, and HMRC may require corrective action if the annual limit is exceeded.