Key takeaways
- The overall ISA allowance stays at £20,000 a year.
- From 6 April 2027, people under 65 can put at most £12,000 of it into cash ISAs.
- People aged 65 or over keep the full £20,000 cash limit.
- For the 2026 to 2027 tax year, the whole £20,000 can still go into cash.
The change in one table
| Tax year | Overall allowance | Cash ISA limit, under 65 | Cash ISA limit, 65 or over |
|---|---|---|---|
| 2026 to 2027 | £20,000 | £20,000 | £20,000 |
| 2027 to 2028 onwards | £20,000 | £12,000 | £20,000 |
The government announced the change for 6 April 2027. It depends on legislation, so details can still move.
Examples for 2027 to 2028
- Aged 40, saving £20,000: up to £12,000 in a cash ISA and at least £8,000 in a stocks and shares ISA to use the whole allowance.
- Aged 40, saving £10,000 in cash only: no change; you are under the £12,000 limit.
- Aged 67: the full £20,000 can still go into cash.
- Aged 30 with a Lifetime ISA: £4,000 into the Lifetime ISA uses £4,000 of the £20,000, leaving £16,000, of which at most £12,000 can go into cash.
Check your own mix in the ISA allowance calculator.
What stays the same
- Interest, dividends and gains inside ISAs remain free of UK tax.
- Money already saved in cash ISAs is not affected, and transferring old ISA savings does not use the allowance.
- Junior ISAs keep their own £9,000 limit.
What to watch for
The government has said it will add rules to stop people getting round the limit, for example by holding cash-like investments in a stocks and shares ISA or moving money from stocks and shares into cash. Check with your ISA provider before moving money after April 2027.
This is general information, not financial advice. Investments in stocks and shares can fall as well as rise.
Sources
Written by the Toolkeel team at Sole Digital Media
Fact-checked against the sources above. We test every tool we mention. Editorial policy.
