Cash ISA Limit Cut: What Savers Need to Know

Rachel Reeves announces a significant shift in the cash ISA limit, reducing it from £20,000 to £12,000 for younger savers starting April 2027. The overall ISA allowance remains at £20,000, but £8,000 must go into a stocks and shares ISA. This change, part of the Autumn Budget, wont affect those over 65. Additionally, tax rates on savings interest for other accounts will increase, affecting basic, higher, and additional rate taxpayers. Critics warn of potential tax rises and reduced mortgage funds, emphasizing the importance of utilizing ISAs for tax-efficient savings. DNN | The Daily News Now! The world’s first global local news network. Every city. Every story. AI powered. Hosted on Acast. See acast.com/privacy for more information.