UK Cuts Cash ISA Limit to £12,000 from April 2027 as £12B Rush Seen in April 2026

Chancellor Rachel Reeves announced in last year's budget that those under 65 would only be allowed to deposit £12,000 annually into Cash ISAs from April 6, 2027, down from the current £20,000 limit. The policy change, set to take effect in the 2027/28 tax year, aims to encourage investment in stocks and shares rather than cash savings.

Data shows £12 billion flowed into Cash ISAs in April 2026, marking one of the highest monthly totals on record, as Brits rushed to maximize their savings before the new limit kicks in. Sarah Coles, head of personal finance at AJ Bell, noted this represents an "unintended consequence" of the policy: "This tax year is the last chance for under-65s to pay in up to £20,000 before their allowance is cut. For a policy intended to encourage people to move away from cash and towards investing, this is hardly the result the government would have been hoping for."