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Chancellor Proposes Major Cuts to ISA Allowances

11/4/2025

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Summary

Story summary

Chancellor may cut the cash ISA allowance from £20,000 to £10,000, with stocks and shares ISA limit unchanged.
Basic-rate taxpayers have a £1,000 savings allowance and higher-rate taxpayers have a £500 allowance.
Married couples can transfer tax allowances, potentially saving up to £252.
Salary sacrifice schemes for pensions could face cuts, impacting workers and employers.
Contributing to pensions remains a viable way to reduce income tax, with relief on contributions.

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Story summary

Chancellor may cut the cash ISA allowance from £20,000 to £10,000, with stocks and shares ISA limit unchanged.
Basic-rate taxpayers have a £1,000 savings allowance and higher-rate taxpayers have a £500 allowance.
Married couples can transfer tax allowances, potentially saving up to £252.
Salary sacrifice schemes for pensions could face cuts, impacting workers and employers.
Contributing to pensions remains a viable way to reduce income tax, with relief on contributions.