In 2025, it was announced by the previous Chancellor, Rachel Reeves, that the cash ISA limit would fall from £20,000 to £12,000 a year from April 2027 for anyone under 65. At the time, the Government said it was aiming to encourage more people to invest in their Stocks and Shares ISA instead.  

However, this decision has been reversed. The limit will stay at £20,000 tax-free for people of all ages.  

This also means the plans for a 22% charge on interest earned from uninvested cash in a Stocks and Shares ISA have been scrapped, as has a ban on transfers from investment ISAs to cash ISAs.  

Nothing is changing, but here’s a reminder of the rules  

An ISA gives you tax-free earnings on your savings or investments. Every tax year, you can contribute a maximum of £20,000 across all your ISAs combined.

This total can be split between different types of ISA, such as Cash ISAs, Stocks and Shares ISAs, or Innovative Finance ISAs. So, for example, you could choose to put £10,000 in your Cash ISA and £10,000 in your Stocks and Shares ISA.  

It’s up to you how you split your £20,000 allowance across your accounts, and you must also manage your allowance across different providers. For example, you could open multiple Cash and Investment ISAs with different banks, but your allowance is still £20,000 across all of them. 

Other kinds of ISAs, such as Junior ISAs have different allowances – you can read more about these here.