Cash ISA Limit Slashed to £12,000 for Under‑65s in 2025 Budget – What It Means for Your Savings
The UK will cut the annual cash ISA limit for under-65s from £20,000 to £12,000 starting April 2027, Chancellor Rachel Reeves confirmed. Savers aged 65 and over keep the £20,000 cash allowance. The overall ISA cap remains at £20,000, but under-65s must use investment ISAs for the balance. Tax on savings interest, dividends, and property income will rise by 2 percentage points.