Autumn Budget 2026 and ISAs: what changed

What did the Budget change for ISAs?

The Chancellor, John Healey, delivered the Budget on Wednesday 28 October 2026. For ISAs, the headline is that the planned cut of the Cash ISA limit from £20,000 to £12,000 for under-65s, announced at the Budget in November 2025 and due from 6 April 2027, is cancelled. HM Treasury’s Budget document says the government “has decided not to reduce the cash ISA limit, so that it remains at £20,000”. Its tax overview says the limit is kept at £20,000 for all savers over 18 from April 2027, and that the change will be made by secondary legislation to be laid before Parliament in November 2026.

The Budget and ISAs, at a glance

Cash ISA limit from 6 April 2027

£20,000

Cut to £12,000 cancelled

Savings tax from 6 April 2027

24% / 44% / 49%

Basic, higher, additional

Overall ISA allowance

£20,000

Not changed in the Budget documents

First Time Buyer ISA

April 2029

For new savers

What is confirmed, and what is not?

On the last three rows: HMRC’s pages from before the Budget still describe them, the Budget document and the tax overview we read do not mention them, MoneySavingExpert reported that the government confirmed they will not go ahead as planned, and Which? reported they are likely to be dropped. We have found no official statement, so we do not state either outcome as fact. We will update this page and the ISA changes 2027 guide when HMRC or the Treasury publishes one.

What about savings tax?

The Budget document says tax rates on savings and property income rise by a further 2 percentage points from April 2027, on top of the 2 points announced at the Budget in 2025. The tax overview gives the savings rates from 6 April 2027 as 24% for basic rate taxpayers, 44% for higher rate and 49% for additional rate. The Personal Savings Allowance and the starting rate for savings are not part of that change, and interest inside an ISA stays tax-free. HM Treasury says 84% of income tax payers are unaffected. See savings tax 2027 and the savings tax calculator.

What is the new ISA for first-time investors?

The Budget document says the government will work with the investment industry to explore a new ISA incentive for people investing in a Stocks and Shares ISA for the first time, and that the detailed design will be developed with industry. There are no amounts, rules or dates yet. Some commentators have suggested designs; those are proposals, not government policy. With investments your capital is at risk.

What about the Lifetime ISA and first homes?

The Budget document says the government will introduce a First Time Buyer ISA from April 2029. It keeps the Lifetime ISA’s generosity: contributions of up to £4,000 a year with a 25% government bonus, paid on the balance when funds are withdrawn for a qualifying first home up to £450,000, with no upper age limit. The tax overview says existing Lifetime ISA holders can keep contributing and using their accounts under the current rules. From 29 October 2026, Lifetime ISA funds can be used to buy a first home above the £450,000 cap, if the purchase otherwise meets the rules, with a reduced 20% charge, and the charge for other unauthorised withdrawals stays 25%. See what the government has proposed and the Lifetime ISA.

What does it mean for you?

Saving in cash. You can keep putting up to £20,000 a year into Cash ISAs, at any age. Nothing forces any of your allowance into investments. See the Cash ISA limit and alternatives to a Cash ISA.

Holding cash in a Stocks and Shares ISA. A planned 22% charge on its interest is unconfirmed. Your investments themselves are not affected. Ask your ISA manager what it expects to apply. With investments your capital is at risk.

Saving outside an ISA. Interest above your allowances will be taxed at higher rates from 6 April 2027, which makes the tax-free wrapper worth more.

Saving for a child. The Junior ISA limit stays £9,000 a year, separate from your own allowance. See how Junior ISAs work.

Key dates. Your 2026/27 allowance ends on 5 April 2027 and does not carry over. The new tax year, and the higher savings tax rates, start on 6 April 2027. See the ISA deadline.