Autumn Budget – ISA allowance update

We explore what the Autumn Budget announcement means for you and your tax free ISA allowance.

ISAs explained

ISAs and savings accounts offer different benefits, depending on how you want to save, for how long, and how much access you want to your money. You can find out more about ISAs on our dedicated ISA hub.

Currently, you can put up to £20,000 into either a Cash ISA or a Stocks and Shares ISA – or split your allowance between them – without paying tax on the money or interest you earn.

How has the ISA allowance changed?

From April 2027, the overall ISA allowance each tax year remains at £20,000. However, if you’re under the age of 65, the amount you can pay into a Cash ISA is reducing to £12,000. The remaining £8,000 can be paid into a Stocks and Shares ISA.

If you’re over 65, nothing is changing - you can still put your full annual £20,000 allowance into a Cash ISA.

How does the change to the cash allowance affect me?

Aged 65 or older? There’s no change to the way you save. The £20,000 Cash ISA limit will continue to apply.

Aged 64 or under? Your tax-free Cash ISA limit will fall to £12,000 in April 2027. This will only apply to new contributions you make from April 2027 and won't affect any contributions you’ve already made into an existing Cash ISA.

You’ll be able to use the remaining £8,000 of your total ISA limit if you invest in a Stocks and Shares ISA.

There's no change to the annual limit to Stocks and Shares ISAs. This will remain at £20,000.

The good news is that you can still make the most of the £20,000 allowance by topping up your ISA before the change comes in.

The earlier you do this the more compound interest you will earn before the tax-free allowance decreases.