Chancellor Rachel Reeves has confirmed that the annual tax-free ISA allowance won’t be reduced from £20,000.
Ms Reeves stated that she ‘absolutely wants to preserve’ the £20,000 tax-free investment people can make every year.
The Chancellor is set to launch a consultation into how the UK ISA market could be overhauled, and did not rule out changes to cash ISAs.
The overall annual savings limit remains at £20,000 for 2024/25 and 2025/26. Investors are allowed to invest in a cash ISA, an investment ISA, an Innovative Finance ISA or a combination of the three, subject to not exceeding the overall annual investment limit.
Investors are able to transfer their investments from a stocks and shares ISA to a cash ISA (or vice versa).
The Chancellor said: ‘I do want people to get better returns on their savings whether that is a pension or their everyday savings. At the moment a lot of money is put into cash or bonds when it could be invested in equities or stock markets and earn a better return from it.'
28/05/2025
View all >
28/07/2025
Pensioners 'set to be worse off'
The Department for Work and Pensions (DWP) has warned that pensioners retiring in 2050 are set to be worse off than those retiring today.
READ MORE
Government publishes Finance Bill docs
The government recently published draft legislation for Finance Bill 2025-26 for consultation.
More small firms expect to shrink
The proportion of small firms expecting to contract, sell or close outnumbered the percentage hoping to grow, the Federation of Small Businesses (FSB) has warned.
Sign up to keep in touch to receive our latest news and industry updates.
* *
Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.