Under 65? Here’s what the ISA allowance changes mean for you

The 2026/27 tax year is now underway – which means your ISA allowance has reset, and you have a fresh £20,000 to save with tax-free interest. But if you're under the age of 65, there's something important you need to know.

The Government announced in the Autumn Budget^* that the amount under-65s can save into a Cash ISA each tax year will fall from £20,000 to £12,000. The remaining £8,000 will then need to go into a Stocks and Shares ISA if you want to use your full allowance.

For those aged 65 and over, nothing changes – you'd keep the full £20,000 Cash ISA allowance.

What does this mean in practice?

This tax year, 2026/27, is the last full year in which savers under 65 can put up to £20,000 into a Cash ISA. After 6 April 2027, that limit drops to £12,000 for cash savings.

Any money already saved in your ISA from this year, or previous years, stays fully protected. The change only applies to new contributions from April 2027 onwards.

Save your way

Whether you're opening a new ISA, topping up an existing one, or transferring from another provider, now could be a good time to consider your options.

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 you find the right option.

^*Everything announced in the 2025 Autumn Budget remains subject to consultation and parliamentary approval, which may take many months and could include further changes.

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