29/06/2026
The Cash ISA is being "scrapped." At least, that's what some of the headlines suggest.
It isn't.
From 6 April 2027, savers under 65 will be able to pay up to £12,000 a year into a Cash ISA — down from £20,000 today.
The overall ISA allowance doesn't change. It stays at £20,000. It's only the slice you can hold in cash that's being capped. The remaining £8,000 would need to go into a Stocks and Shares ISA, where your capital is at risk.
Two things worth knowing:
If you're 65 or over, the cap doesn't apply. You keep the full £20,000 in cash.
This tax year is the last full year under-65s can put the whole £20,000 into a Cash ISA.
There's no need to rush into anything.
But it's a window worth being aware of — especially as the tax on savings interest held outside an ISA is also set to rise from April 2027. For some savers, sheltering interest inside an ISA could become more valuable, not less.
Our latest article walks through what's changing, who it affects, and a few questions worth asking before the rules shift.
Read the full article here https://caliberfm.co.uk/cash-isa-changes-2027/
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This post is for general information only and does not constitute financial advice.
