From 6 April 2027, the UK Government is introducing changes to how you can use your annual ISA allowance across your ISAs. While the overall annual ISA allowance stays at £20,000, new rules will affect how much of this allowance can be contributed to a Cash ISA by you, depending on your age.
What is changing?
Cash ISA contribution cap (Under 65s)
If you are under 65, you will be able to contribute a maximum of £12,000 into a Cash ISA tax-free in each tax year. The remaining £8,000 of your £20,000 annual ISA allowance can be used for investment purposes and contributed to another type of ISA.
No change for customers aged 65 or over
There will be no cap on Cash ISA contributions if you are 65 or over. This means that you will be able to contribute any amount up to the full £20,000 into your Cash ISA each tax year.
What stays the same?
- The overall annual ISA allowance stays at £20,000.
- You can still choose to split your annual ISA allowance across different ISA types, subject to the new Cash ISA contribution limits.
What happens before 6 April 2027?
There are no changes to your annual ISA allowance before 6 April 2027 - you can continue using your Cash ISA as normal until then.
You can deposit:
- 2025/26 tax year: Up to £20,000 in your Cash ISA
- 2026/27 tax year: Up to £20,000 in your Cash ISA
This means you can continue earning tax-free interest on your £20,000 annual ISA allowance until the new rules come into effect.
How can Trading 212 help?
You can use Trading 212 to make the most of your ISA allowance - whether you're saving in cash or investing for long-term growth.
With current ISA rules still in place for two more tax years, you can continue to:
- Add up to £20,000 to your Cash ISA each tax year
- Earn tax-free interest on your Cash ISA balance
- Manage your savings and investments from one place