Budget 2025: ISA limit slashed to £12k

Sara White, Editor, Business & Accountancy Daily. Croner-i

As trailed in the most leaked Budget ever, chancellor confirmed cash ISA limit will be cut to £12,000.

However, savers over 65 will be able to continue to have the full £20,000 limit, at least initially.

There will be a split ISA allowance going forward for adults, with £12,000 allocated to cash and £8,000 to stocks and shares for each person.

The new limits will come into effect in three years’ time.

From 6 April 2027 the annual ISA cash limit will be set at £12,000, within the overall annual ISA limit of £20,000.

Annual subscription limits will remain at £20,000 for ISAs, £4,000 for Lifetime ISAs and £9,000 for Junior ISAs and Child Trust Funds until 5 April 2031.

In addition, banks and investment platforms, including Hargreaves Lansdown, Barclays and Lloyds will be supporting the scheme to make it easier for people to consider the more high risk stocks and shares ISA options.