Cash ISA allowance to remain at £20,000 for all savers

Good news for savers. It has been confirmed in the Autumn 2026 budget that the annual Cash ISA allowance will remain at £20,000, allowing savers to continue making the most of their tax-free savings allowance.*

Earlier proposals would have seen the Cash ISA allowance for under-65s reduced to £12,000 from April 2027, while those aged 65 and over would have retained the full £20,000 allowance. However, following a review of the policy, the Government has confirmed that the reduction will no longer go ahead.

What does this mean for savers?

The annual ISA allowance remains unchanged at £20,000, and you can continue to save up to this amount in a Cash ISA each tax year without paying UK tax on the interest you earn.

There is no action required if you've already opened or contributed to a Cash ISA this tax year. Existing savings remain unaffected, and the rules for Cash ISAs continue as they do today.

Save your way

Whether you're opening a new ISA, topping up an existing account or transferring from another provider, a Cash ISA can continue to be a tax-efficient way to grow your savings.

At Kent Reliance, we offer a range of Cash ISAs, from easy access to fixed rates, so you can save in the way that suits you. Our team are on hand online or in branch to help with any questions you have about our savings products.

Frequently asked questions

What is the Cash ISA allowance for 2027/28?

The Cash ISA allowance remains £20,000 per tax year for all eligible UK savers. Following confirmation in the Autumn 2026 Budget, plans to reduce the allowance for under-65s have been withdrawn, meaning savers can continue to contribute up to £20,000 into a Cash ISA and benefit from tax-free interest.

Has the Government reduced the Cash ISA allowance?

No, the Government has confirmed that the Cash ISA allowance will remain at £20,000. Earlier proposals suggested reducing the allowance to £12,000 for savers under 65 from April 2027, but this change will no longer go ahead.

Do I need to do anything with my existing Cash ISA?

No action is required if you already have a Cash ISA. Existing accounts and savings are unaffected, and you can continue to contribute within the annual £20,000 ISA allowance, subject to normal ISA rules.

What are the benefits of saving in a Cash ISA?

A Cash ISA allows you to earn interest on your savings without paying UK tax on that interest. With the £20,000 annual allowance remaining in place, Cash ISAs continue to offer a tax-efficient way to save, whether you prefer easy access or fixed-rate accounts.

Can I still transfer another ISA into a Cash ISA?

Yes. You can still transfer savings from a non-cash ISA, such as a Stocks and Shares ISA, into a Cash ISA. Plans to restrict these transfers for under-65s have been scrapped, meaning savers can continue moving ISA funds into an existing or new Cash ISA while keeping their ISA tax benefits.

Find out more about our ISA range.

*This article reflects Government announcements as of 28 October 2026. ISA rules and tax treatment may change in future and depend on individual circumstances.

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