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What is changing in 2027 and 2028?

The short answer

The cash ISA allowance falls to £12,000, and the Lifetime ISA is replaced.

From 6 April 2027 the amount you can put into a cash ISA each year drops from £20,000 to £12,000. The overall £20,000 ISA allowance is unchanged, so the remaining £8,000 has to go into stocks and shares, innovative finance, or a Lifetime ISA. Over-65s are exempt and keep the full £20,000 in cash.

That makes 2026/27 the last full-allowance year for cash. If you were going to use it, use it before 5 April.

From April 2028 the Lifetime ISA is due to be replaced by an ISA for first-time buyers only. Existing holders can continue contributing under current rules.

The numbers
  • 6 April 2027 · cash ISA £12,000
  • Over-65s exempt
  • April 2028 · LISA replaced
Read next
What is a Lifetime ISA, and what is the catch?A 25% government bonus on £4,000 a year — with a lock and a penalty attached. Is an ISA actually worth it for me?Often not, if you are a basic-rate taxpayer with under about £22,000 saved.

General information about savings and tax, not advice about your situation. Rules and rates change — this page was checked on 26 Aug 2026.