- At the Budget 2025, the Chancellor announced that the maximum amount that can be annually invested into a cash Individual Savings Account (ISA) will be reduced from £20,000 to £12,000 from 6 April 2027. This will only apply to investors aged 65 and under.
- Currently, there are four types of ISA (cash, stocks and shares, innovative finance, and lifetime) and up to £20,000 can be invested into one account or across multiple accounts (apart from the lifetime ISA, which has an annual limit of £4,000).
- Investing into an ISA means individuals do not pay tax on interest on cash in an ISA, or on income or capital gains from investments in other forms of ISA.
- The overall limit will remain £20,000 but only a maximum of £12,000 can be invested into a cash ISA annually for those aged 65 and under.
- The annual investment limits for Junior ISA and Child Trust Fund accounts are frozen at £9,000 until 5 April 2031.
- Timing: These measures will be effective from 6 April 2027.
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