UK to cut cash ISA limit to £12K for under-65s starting April 2027, pushing more savings into stocks.

Starting in April 2027, the UK will reduce the annual cash ISA allowance to £12,000 for savers under 65, with the remaining £8,000 required to be invested in stocks and shares ISAs. The overall £20,000 ISA limit will remain, but the structure changes aim to encourage investment. Those aged 65 and over will keep the current £20,000 allowance. A new tax charge on interest from cash held in certain ISAs may also be introduced, though details are pending. The changes follow Chancellor Rachel Reeves’ Autumn Budget announcement and are part of broader efforts to reshape savings behavior.