Guidance

Tax-free savings newsletter 19 — November 2025

Published 27 November 2025

1. Autumn Budget 2025

The following is a summary of all the announcements in the Budget on 26 November 2025 in connection with tax-free savings.

2. Annual subscription limits

The government announced that:

• the Individual Savings Account (ISA) annual subscription limit will remain at £20,000 until April 2031
• junior Individual Savings Accounts (ISAs) and Child Trust Funds will remain unchanged at £9,000 until April 2031
• lifetime ISAs will remain unchanged at £4,000 until April 2031

3. Cash ISA limit

The government will make the following changes to ISAs from 6 April 2027:

• the annual subscription limit for a cash ISA will be set at £12,000 for investors under the age of 65
• for investors aged 65 and over the annual subscription limit for a cash ISA will remain at £20,000

The following rules will be introduced to avoid circumvention of the lower limit for cash ISAs:

• no transfers from stocks and shares and Innovative Finance ISAs to cash ISAs
• tests to determine whether an investment is eligible to be held in a stocks and shares ISA or is ‘cash like’
• a charge on any interest paid on cash held in a stocks and shares or Innovative Finance ISA

These rules will apply to investors under the age of 65.

Industry will be consulted on the draft legislation, which will be made by amendments to the ISA regulations, and laid before Parliament well ahead of April 2027.

4. Digitalisation of ISA reporting

Following industry feedback and internal analysis, the government has decided to postpone mandatory digital reporting under digitalisation of ISAs until April 2028.

To make sure of a smooth transition and minimise disruption for savers, ISA reform (cash limit change) will proceed from April 2027, using existing reporting methods, while digitalisation of ISA reporting mandation will follow one year later.

This staged approach reflects industry concerns and supports effective delivery of measures designed to boost investment and improve returns for consumers.

As we work towards April 2028, HMRC will continue to work closely with industry to support preparations ahead of the start of the test period in Autumn 2026.

5. Lifetime ISA

The government will consult on introducing a new, first time buyer only product that will provide the bonus when a person uses it to buy a house, removing the need for a withdrawal charge and giving savers flexibility in case their circumstances change.

6. Help to Save extension

The government has confirmed that the Help to Save scheme, which provides low-income households with a 50% bonus on savings over four years, will be made permanent.

From April 2028, eligibility will be extended to include all Universal Credit claimants receiving the child or caring element, strengthening support for families and carers.

7. Savings rates

With effect from 6 April 2027 the rates of Income Tax applicable to savings income will change. From tax year 2027 to 2028, the savings:

• basic rate will be increased to 22%
• higher rate will be increased to 42%
• additional rate will be increased to 47%

The starting rate for savings and the Personal Savings Allowance remain unchanged.