Update, 28 October 2026: the planned £12,000 Cash ISA limit has been scrapped. In the Autumn Budget, Chancellor John Healey confirmed that savers can keep paying up to the full £20,000 a year into a Cash ISA from April 2027, whatever their age. Here is what was planned, what changed and what it means for you.
What was planned
In the November 2025 Budget, the government announced that from 6 April 2027 the most under-65s could put into Cash ISAs each year would fall from £20,000 to £12,000. The rest of the £20,000 allowance would have had to go into a Stocks and Shares ISA or another type. Banks and building societies warned that the change would hurt cautious savers.
What changed in the October 2026 Budget
- Cash ISA cap scrapped: the £20,000 allowance can still go entirely into cash in 2027/28.
- Transfer restrictions dropped: the planned limits on moving money from Stocks and Shares ISAs into Cash ISAs, and the proposed tax on cash held inside investment ISAs, were also dropped, according to savings industry reports.
- Overall allowance: stays at £20,000 a year.
- Lifetime ISA: from 29 October 2026 the withdrawal charge for buyers whose home costs more than £450,000 falls from 25% to 20%. A new First Time Buyer ISA is planned for April 2029.
- Savings tax rising: from April 2027 tax on savings interest outside an ISA rises by four percentage points, to 24% for basic-rate and 44% for higher-rate taxpayers.
ISA limits for 2027/28
| Account | Yearly limit |
|---|---|
| All ISAs combined | £20,000 |
| Cash ISA | Up to £20,000 |
| Stocks and Shares ISA | Up to £20,000 |
| Lifetime ISA | £4,000 (part of the £20,000) |
| Junior ISA | £9,000 per child |
What it means for you
- No rush: there is no longer a deadline to fill your Cash ISA before a cut.
- ISAs matter more: with higher tax on savings interest from April 2027, sheltering savings in an ISA is worth more than before, especially for higher-rate taxpayers.
- Cash still has limits: for money you will not need for five years or more, a Stocks and Shares ISA has historically grown faster, although it can fall in value.
See the full limits in our ISA allowance 2027/28 guide, compare Stocks and Shares ISA vs Cash ISA, and project your savings with the ISA calculator.
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Frequently asked questions
Is the cash ISA limit changing in April 2027?
No. The £12,000 cap was scrapped in the 28 October 2026 Budget, so the limit stays at £20,000.
Do over-65s have any different rules?
No. Everyone aged 18 or over can put up to £20,000 a year into a Cash ISA.
Could the cap come back?
Governments can change ISA rules at future Budgets, so it is worth checking each year.
Sources: Autumn Budget 2026 coverage by Moneyfacts and MoneySuperMarket. This article is general information, not financial advice.
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