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Chancellor Keeps £20,000 Cash ISA Allowance, Drops Measures

By Drooid · Oct 28, 2026, 14:49 UTC · How we work

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Summary

Chancellor John Healey announced he will retain the cash ISA allowance at £20,000, reversing the planned cut to £12,000.
Healey also scrapped anti-avoidance measures, including the ISA transfer ban and a 22% tax on cash-like investments.
The reversal keeps the £20,000 limit for under-65s while removing the additional £8,000 allowance for over-65s.
AJ Bell, PIMFA and Killik & Co praised the decision, saying the cut would have harmed investment.

History

Introduced in 1999 with a £5,000 cap, ISAs saw Gordon Brown raise the cash limit to £15,000 in 2008, prompting a 12% rise in subscriptions. The overall allowance has since settled at £20,000, and the UK government announced a £12,000 cash limit for under-65s from April 2027. Labour’s John Healey rejected that cut, keeping the £20,000 ceiling.

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Historical Context

Introduced in 1999 with a £5,000 cap, ISAs saw Gordon Brown raise the cash limit to £15,000 in 2008, prompting a 12% rise in subscriptions. The overall allowance has since settled at £20,000, and the UK government announced a £12,000 cash limit for under-65s from April 2027. Labour’s John Healey rejected that cut, keeping the £20,000 ceiling.

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