The current cash ISA limit will remain unchanged at £20,000 a year of tax free savings as new chancellor John Healey reverses predecessor Rachel Reeves’ unpopular plan to nearly half the big tax break and introduce major tax complexity in a previously simple system.
Delivering his first Budget, the chancellor said: ‘I will not go ahead with the tax free amount people can put in a cash ISA, the limit will stay for people of all ages and will work with sector to create a new starter ISA for first-tine savers.’
The reduced ISA cash limit was due to come into effect from April 2027, and would have seen the balance shifted to stocks and shares ISAs instead with restrictions on cash savings and a cap of £20,000 on total ISA savings.
