Upcoming ISA Changes: What Is Confirmed and What Is Only Proposed

Some upcoming ISA changes are confirmed, some are made in law with a start date, one is announced with a start date, and one is only a proposal. The overall ISA allowance of £20,000 is confirmed to stay the same until April 2031 by HMRC's tax-free savings newsletter 19. A cash ISA limit of £12,000 for younger savers has been made in law (SI 2026/1018, read on legislation.gov.uk on 6 October 2026), to apply from April 2027. A First Time Buyer ISA to replace the Lifetime ISA is under consultation, with no launch date.

The site's rules data was last checked against gov.uk on 26 September 2026. Figures typed in this guide may not yet reflect a later change, and the descriptions of gov.uk pages are summaries that may also lag. The current figures are on the ISA rules at a glance page. General information only, not financial advice.

Announced and proposed changes can change before they take effect, and the freeze rests on a statement in an HMRC newsletter, so it is worth rechecking on gov.uk. Nothing here is a forecast of what will happen, and the status labels below describe the status recorded in the site's rules data.

What do "confirmed", "made", "announced" and "under consultation" mean?

These four labels are used on this site, and they carry different levels of certainty.

• Confirmed means the rule is in force, or the government has confirmed it for the year in question. The current 2026-27 allowances are examples. The freeze on the limits is labelled confirmed because HMRC's tax-free savings newsletter 19 states it; the label rests on that statement and not on legislation, which this guide has not checked.
• Made means the law has been made, as a Statutory Instrument on legislation.gov.uk, but is not yet in force: it applies from its start date. This guide has read the main provisions of SI 2026/1018 (regulations 3, 4, 6, 9, 13 and 15) on legislation.gov.uk on 6 October 2026, not every provision and not the updated guidance that newsletter 23 says HMRC will publish before 6 April 2027.
• Announced means the government has published a policy with a start date. The rule is not yet in force. Once the law has been made, the rule is labelled "made" instead.
• Under consultation means the government is asking for views on an idea, or has asked and not yet published an outcome. There is no decision and no start date, and the idea may change or be dropped.

The site's calculators apply confirmed, made and announced rules to the relevant tax year, so a plan that runs past April 2027 reflects the cash limit made in law. Proposals under consultation are never applied to any calculation.

What is confirmed to stay the same until April 2031?

HMRC's tax-free savings newsletter 19 (November 2025) says the annual ISA subscription limit, the Lifetime ISA limit and the Junior ISA limit will not change until April 2031. The figures are:

• overall ISA allowance: £20,000 a year
• Lifetime ISA: £4,000 a year (gov.uk describes a bonus of 25%, to a maximum of £1,000 a year)
• Junior ISA: £9,000 a year

The configured rules on this site run to April 2031 because that is as far as the newsletter says the limits will remain.

What changes on April 2027?

Related changes have been made in law (SI 2026/1018, read on legislation.gov.uk on 6 October 2026), to apply from the start of the tax year that begins in April 2027. The dates come from the regulations on legislation.gov.uk, gov.uk policy papers, a factsheet and an HMRC newsletter.

A lower cash ISA limit for younger savers

From April 2027, the amount a saver who is under 65 at the end of the tax year can pay into cash ISAs in that tax year is limited to £12,000 by regulations made on 10 September 2026 (SI 2026/1018, regulation 6, read on legislation.gov.uk on 6 October 2026). This sits inside the overall £20,000 allowance, so the remainder can still go into other types of ISA. The policy paper says savers aged 65 and over would continue to be able to save up to £20,000 a year in a cash ISA. The age and the details are set out in our guide to the cash ISA changes, which this post does not repeat.

The configured status is "made". Legislation.gov.uk lists the Individual Savings Account (Amendment) (No. 2) Regulations 2026 (SI 2026/1018, read on legislation.gov.uk on 6 October 2026) as made on 10 September 2026 and laid before the House of Commons on 14 September 2026, coming into force on 6 April 2027. HMRC's tax-free savings newsletter 23 (published 29 September 2026) also says they were laid on 14 September 2026 and will come into force on 6 April 2027. The government's earlier factsheet said, in the version read for this guide, that a technical consultation on the draft legislation would start shortly and that regulations would be laid in the autumn. The site records the rules as "made", not "confirmed" or "in force", because they do not apply until 6 April 2027.

Anti-circumvention rules

The same regulations include related rules that start on the same date. The anti-circumvention factsheet says these rules "will minimise the opportunity for the lower Cash ISA limit to be circumvented, while preserving the flexibility needed for legitimate investment activity within non Cash ISAs"; the provisions read do not state that purpose themselves. In summary (regulations 13, 15, 9, 3 and 4 of SI 2026/1018):

• transfers from a stocks and shares or Innovative Finance ISA to a cash ISA are allowed if the ISA holder is 65 or over at the end of the tax year (regulation 13, which inserts regulation 21(4ZA))
• the account manager (the firm that runs the ISA) must pay HMRC a flat rate charge on interest or alternative finance returns paid or credited on cash held in a stocks and shares or Innovative Finance ISA (other than a Junior ISA, regulation 4), which the regulations say is "charged at the savings basic rate in force for the year" (regulation 15). Regulation 22A gives no percentage: the anti-circumvention factsheet gives 22%, and the pages read do not state whether the savings basic rate for that year equals it
• money market funds are qualifying investments for a stocks and shares ISA on condition that 100% of the value of the investments other than cash is not money market funds, so they can be held but cannot make up the whole of the non-cash investments (regulation 9). A money market fund here is one authorised under Article 4 or Article 5 of Regulation 2017/1131 (regulation 3), and the condition does not apply to Junior ISAs (regulation 4). The factsheet describes this as "cash-like assets" and a "non-cash ISA", and HMRC newsletter 23 as stocks and shares ISAs; the provisions read use none of these phrases, and the pages read do not say what the rule means for other ISA types

These are also recorded as "made". The transfer rule in the first point is written for transfers out of stocks and shares and Innovative Finance ISAs. Regulation 13 also amends the paragraph of regulation 21 that deals with transfers out of a cash ISA (it adds the words "In the case of a cash account" and removes the words "(if the account investor is 18 years of age or over)" from three sub-paragraphs); this guide does not set out what that changes, so check the regulations and your provider. Our guide to how to transfer ISA accounts explains how ISA transfers work today.

What else changes on 6 April 2027?

Not an ISA rule, but relevant to people who weigh ISAs against pensions: the government has announced that most unused pension funds and death benefits will come within Inheritance Tax from 6 April 2027, according to an HMRC policy paper on gov.uk. The site records this as "announced" and does not treat it as in force.

ISAs are not mentioned in that policy paper. gov.uk's guidance on what happens to an ISA when the holder dies says ISA investments form part of the estate for Inheritance Tax purposes. What it means for a particular estate depends on the individual circumstances, the type of pension and the rules that are finally put into legislation, so it is a matter for a regulated adviser or tax professional rather than for a general guide.

What is only a proposal?

A First Time Buyer ISA is being considered as a simpler product that would be offered in place of the Lifetime ISA. The government held a consultation on it, which has now closed. The site's rules data records, as at 26 September 2026, that responses are being analysed and that no launch date has been given; the linked gov.uk page has the current position.

That is the whole of what is known, and it means:

• the Lifetime ISA rules described on this site still apply
• nothing about a new product's limits, bonus or eligibility has been decided
• the site's calculators do not model it

Until gov.uk publishes an outcome, any description of how it would work is a guess. If you hold, or are thinking about, a Lifetime ISA, our guide to the Lifetime ISA for a first home covers the current rules.

Summary table: upcoming ISA changes and their status

How does the timeline look in order?

1. Now, in the 2026-27 tax year: the £20,000 allowance applies, with no separate cash ISA limit. The tax year ends on 5 April 2027.
2. April 2027: the cash ISA limit and anti-circumvention rules made in law are due to start, and the pensions Inheritance Tax change is due to take effect.
3. Undated: any outcome from the First Time Buyer ISA consultation.
4. April 2031: the confirmed freeze on the main limits runs to this point. Nothing in the configured rules covers what happens after it.

Where can you see how the limit made in law affects a plan?

The Cash ISA Calculator leaves out any cash above the limit made in law in years it applies, using an assumed rate that you set, not a forecast. All the current, made and announced limits are on one page at ISA rules at a glance. If you are choosing how to spread money across accounts, our guide to how many ISAs you can have explains the rules on paying into more than one ISA of the same type.

For an example of how a limit interacts with timing: a saver with £8,000 they intend to hold in cash would be within a limit of £12,000 in a single year, but a saver with £15,000 would not be, if both are under 65. These figures are illustrations, not rule amounts.

What to check with your provider

• Has my provider said how it will handle the changes made in law for existing accounts?
• Does my stocks and shares ISA hold cash or a Money Market Fund, and how might the flat-rate charge on interest apply?
• If I plan a transfer, would the transfer rule affect it, given my age?
• Where can I see the provider's own timetable for any changes to its ISA terms?

Frequently asked questions

Which ISA changes are confirmed?

The confirmed item on this site's list is the freeze on the overall ISA limit, the Lifetime ISA limit and the Junior ISA limit until April 2031, as stated in HMRC's tax-free savings newsletter 19. The cash ISA limit and related rules are recorded as made (SI 2026/1018, read on legislation.gov.uk on 6 October 2026), which means the law has been made with a start date but is not yet in force; the pensions Inheritance Tax change is recorded as announced.

Could an announced or made ISA change still be altered?

Yes. Announced and proposed changes can change before they take effect, and details in regulations may differ from earlier policy papers: this guide read the main provisions of SI 2026/1018 on legislation.gov.uk on 6 October 2026, not every provision. This site labels each item with the status recorded in its rules data and reviews that against gov.uk, most recently on 26 September 2026.

Is the First Time Buyer ISA going to replace the Lifetime ISA?

It is a proposal only. The site's rules data records, as at 26 September 2026, that the consultation has closed, responses are being analysed and no launch date has been given. The Lifetime ISA rules in this guide and on the site remain those that currently apply.

Do the changes affect ISAs I already hold?

Regulations made on 10 September 2026 (SI 2026/1018, read on legislation.gov.uk on 6 October 2026) provide for a lower cash ISA limit for savers who are under 65 at the end of the tax year, allow transfers from a stocks and shares or Innovative Finance ISA to a cash ISA if the ISA holder is 65 or over at the end of the tax year, and set a flat rate charge on interest or alternative finance returns on cash held in those ISAs (other than a Junior ISA, regulation 4), all to apply from April 2027; the anti-circumvention factsheet gives the charge as 22%. The policy paper names people who hold cash or Money Market Funds within stocks and shares ISAs as among those affected. The pages read for this guide do not say how the measures apply to money already held in an ISA, so check with your provider, the regulations and gov.uk.

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This guide does not constitute financial advice. Your personal situation, tax position, and savings goals may mean different strategies are appropriate. Consider speaking to a regulated financial adviser if you are uncertain.