The Cash ISA limit is falling to £12,000. Here is exactly what that means for you
From 6 April 2027, savers under 65 can put only £12,000 a year into a Cash ISA. This guide checks your birth date, works out your split, and shows what the cap really changes.
Updated 24 October 2026 · UK savers
- Until 5 April 2027 you can still pay the full £20,000 allowance into cash.
- From 6 April 2027, under-65s can pay in at most £12,000 to Cash ISAs. The other £8,000 must go elsewhere.
- Money already in Cash ISAs is untouched. The age test looks at the tax year you turn 65, not your birthday.
- New anti-avoidance rules stop under-65s moving Stocks and Shares ISA money into Cash ISAs.
Age checker
Which limit applies to you?
| Tax year | Your Cash ISA limit |
|---|
Enter your birth date for an exact answer. Until you do, the table assumes you are under 65.
What changes and what does not
| Rule | To 5 April 2027 | From 6 April 2027 |
|---|---|---|
| Cash ISA limit, under 65 | £20,000 | £12,000 |
| Cash ISA limit, 65 and over | £20,000 | £20,000 |
| Total ISA allowance | £20,000 | £20,000 (held to April 2031) |
| Lifetime ISA / Junior ISA | £4,000 / £9,000 | £4,000 / £9,000 |
| Moving Stocks and Shares ISA into Cash ISA, under 65 | Allowed | Not allowed |
| Moving Cash ISA into Stocks and Shares ISA | Allowed | Allowed |
| Interest on cash held inside non-cash ISAs | Tax-free | 22% charge, as reported |
| Balances already in Cash ISAs | Tax-free | Still tax-free |
The government says the aim is to push savers towards investing. To stop people dodging the cap, it is also limiting how much of a Stocks and Shares ISA can sit in cash-like money market funds. HMRC has published draft regulations and guidance, so check GOV.UK for final wording before acting.
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The age rule people get wrong
The test is not your birthday. The £12,000 cap lifts from the start of the tax year in which you turn 65. Two examples:
- You turn 65 in June 2027. You are 65 by the end of the 2027/28 tax year, so you can pay the full £20,000 into cash from 6 April 2027.
- You turn 65 on 1 April 2029. The full £20,000 cash limit applies from the 2028/29 tax year onwards.
In practice, anyone born on or before 5 April 1963 keeps the full cash limit in 2027/28. The checker above does this for every year to 2031/32.
Allowance planner
Plan your 2027/28 split
Uses the savings tax rates confirmed for 2027/28 (22%, 42%, 47%) and Personal Savings Allowance of £1,000, £500 and £0. Illustration only, not advice.
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Should you use the full £20,000 in cash before April?
This is a question about when you need the money, not just tax. Cash suits money you may need within a few years. Money you will not touch for five years or more is often better suited to a Stocks and Shares ISA, which can fall as well as rise.
For context, the Bank of England official Bank Rate is currently UK Bank Rate:3.75%-0.25, and top fixed Cash ISAs have hovered above 4.5–5.0%. Rates adjust with monetary policy, so check the live Money Pulse rate tracker. Before locking into a fixed ISA, always verify penalty and transfer rules.
What the cap really costs
Less than the headlines suggest, for most people. Interest outside an ISA is only taxed once it passes your Personal Savings Allowance: £1,000 for basic-rate taxpayers, £500 for higher-rate and nothing for additional-rate. At a 4.5% rate that lets a basic-rate taxpayer hold about £22,000 of cash outside an ISA before tax is due, and a higher-rate taxpayer about £11,000.
The cost grows if rates rise, your balance grows, or you earn more. Use the UK Budget 2026 tax-freeze calculator to see where you are heading.
Where the other £8,000 can go
- Stocks and Shares ISA. Keeps growth and income tax-free but your money is at risk.
- Lifetime ISA. If you are aged 18 to 39 you can pay in up to £4,000 a year, which counts towards the £20,000.
- Cash outside an ISA. Fine up to your Personal Savings Allowance headroom, as shown in the planner.
Couples: each partner has their own allowance. Two people under 65 can put £24,000 a year into cash ISAs and £40,000 in total across all ISA types.
Mistakes to avoid
- Paying into several Cash ISAs without tracking the combined annual limit.
- Forgetting that transfers of current-year payments must move in full.
- Parking cash in a Stocks and Shares ISA to dodge the cap.
- Acting on rumour. See the Budget Day hub for confirmed changes.
Questions people ask
What is the Cash ISA limit from April 2027?
From 6 April 2027 savers under 65 can pay at most £12,000 a year into Cash ISAs. The overall ISA allowance stays at £20,000, and people aged 65 or over keep the full £20,000 for cash.
Can I still put £20,000 into a Cash ISA this tax year?
Yes. 2026/27 runs to 5 April 2027 and is the last tax year in which everyone can put the full £20,000 into cash.
Does the new limit affect money already in my Cash ISA?
No. Existing balances are untouched and keep earning tax-free interest. The limit applies to new payments from 6 April 2027.
When does the over-65 exemption start?
At the start of the tax year in which you turn 65, not on your birthday. Someone turning 65 in June 2027 can pay £20,000 into cash from 6 April 2027.
Sources and method
Rules drawn from published guidance by HMRC, GOV.UK, Which?, NatWest, Yorkshire Building Society and Moneyfactscompare, checked on 24 October 2026. Always confirm against GOV.UK. General information only, not financial or tax advice. Investments can fall in value.