Six months until the £12,000 cash ISA cap for under-65s

From 6 April 2027 under-65s can put at most £12,000 a year into cash ISAs. The £20,000 overall limit stays, existing balances untouched

TaxHub editorial teamLast reviewed 21 September 2026 · 2 min read · Checked against the original announcement

There are now six months until the cash ISA rules change. From 6 April 2027, anyone under 65 will be able to put at most £12,000 a year into cash ISAs. The overall ISA allowance stays at £20,000, so the remaining £8,000 can only go into a stocks and shares or innovative finance ISA. Over-65s keep the full £20,000 cash allowance. Money already in cash ISAs is not affected, and there is no limit on how much you can hold in total.

Key facts: from 6 April 2027 under-65s limited to £12,000 a year in cash ISAs. Overall £20,000 allowance unchanged. Over-65s keep £20,000 cash. Existing balances untouched. Transfers from stocks and shares ISAs into cash ISAs barred for under-65s from that date. Full £20,000 cash allowance still available for 2026/27.

What is changing

The cap applies to new money paid in each tax year from 2027/28 onwards. If you are under 65 and want to shelter £20,000 from tax, £12,000 can go into cash and the other £8,000 must be invested.

The other change is on transfers. From April 2027, under-65s will not be able to move money from a stocks and shares ISA into a cash ISA. Moving the other way, from cash to investments, remains allowed. Transfers between cash ISAs are unaffected.

What is not changing

The £20,000 overall allowance. The tax-free status of interest inside a cash ISA. The right to keep every pound you already have in cash ISAs, however large the total. Cash ISA transfers between providers. The Lifetime ISA, which stays at £4,000 a year with its 25% bonus and counts towards the £20,000. And for anyone 65 or over on 6 April 2027, nothing changes at all.

The current tax year, 2026/27, runs to 5 April 2027 under the old rules. You can still put the full £20,000 into cash this year.

What it means for you

If you are under 65 and hold a large cash balance outside an ISA, this is the last tax year to move up to £20,000 of it into a cash ISA in one go. After April it will take two years to shelter the same amount in cash.

If you have investments in a stocks and shares ISA and were planning to move them into cash at some point, for example ahead of retirement, that door closes in April for under-65s. Think about whether you want to make that move before then. Cash ISA rates are around 4.5% to 5% at the top end; check a comparison site for today's rates.

Information only, not personal advice; investments can fall as well as rise.

How we checked this Figures in this guide were taken from the original announcement and were correct on 21 September 2026. Spotted a change or an error? Tell us and we will review it.

About this guide. TaxHub explains how things work; it does not give personal financial advice and is not regulated by the FCA. Figures were correct when written but change often. Check gov.uk or the provider before you act, and get regulated advice for decisions about pensions, mortgages or investments.