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 >
21/01/2026
Anxiety over business rates hits high
A third of UK firms are worried about their business rates, according to data from the British Chambers of Commerce (BCC).
READ MORE
HMRC app usage surged in 2025
Use of the HMRC app surged last year as millions of users downloaded it for the first time, according to the tax authority’s figures.
Over 4,700 file festive self assessments
More than 4,600 self assessment taxpayers filed their tax return on Christmas Day, according to data from HMRC.
Sign up to keep in touch to receive our latest news and industry updates.
CharitiesDentistsDoctorsTax
Yes, I would like to receive email updates providing me with the latest finance news, advice guides and details of future events.