What’s changing in April 2027
| Total ISA allowance | £20,000 a year, frozen until April 2031 |
|---|---|
| Cash ISA limit, under 65, from 6 April 2027 | £12,000 a year |
| Cash ISA limit, 65 or over | Stays at £20,000 |
| Tax on savings interest from April 2027 | 22%, 42% or 47% (up from 20%, 40%, 45%) |
Until 5 April 2027 anyone can put their whole £20,000 allowance into cash ISAs. After that, under-65s can put £12,000 in cash and the rest in stocks and shares. You also won’t be able to move money from a stocks and shares ISA into a cash ISA.
How much interest is tax-free?
| Basic-rate taxpayer | £1,000 a year |
|---|---|
| Higher-rate taxpayer | £500 a year |
| Additional-rate taxpayer | £0 |
| Starting rate for savings | Up to £5,000 more, if your other income is under £17,570 |
Interest inside an ISA is always tax-free and doesn’t use up these allowances.
Is your money earning enough?
Compare savings accounts and cash ISAs from many banks in one place.
Compare savings ratesWorked example
Carol has £30,000 in an easy-access account paying 2%, so she earns £600 interest a year. As a higher-rate taxpayer, £500 of that is tax-free.
| Tax this year (40% on £100) | £40 |
|---|---|
| Tax from April 2027 (42% on £100) | £42 |
| In a cash ISA | £0 |
Moving £20,000 into a cash ISA before 5 April 2027 would leave £200 of interest outside, which her £500 allowance covers, so she’d pay no tax at all. If rates rise, or her savings grow, the ISA matters even more.
Questions
Can I still put £20,000 in a cash ISA?
Yes, until 5 April 2027. From 6 April 2027, under-65s can put up to £12,000 a year into cash ISAs. Over-65s can still put £20,000.
Does interest count towards my income?
Yes. Savings interest outside an ISA adds to your income, which can push you into a higher tax band and cut your tax-free savings allowance from £1,000 to £500.
What does this calculator leave out?
Scottish income tax bands, dividends, interest rate changes, inflation, and the exact date your bank pays interest. It’s a guide, not financial advice.