Autumn Budget 2025: how does it affect my ISA savings?
Find out what changes were announced in the 2025 Autumn Budget and what it means for savers.
Published:26 November 2025
What’s changing and what does it mean?
What are the current ISA limits?
The ISA limit is £20,000 for the current tax year and has been since April 2017.
This limit applies across all ISA types you may hold; Cash ISA, Stocks and Shares ISA, Innovative Finance ISA and Lifetime ISA.
Whilst you can hold more than £20,000 in an ISA or across ISAs, £20,000 is the combined maximum amount you can add across any ISA accounts you may hold within the tax year.
Of this limit, a maximum of £4,000 can be deposited into a Lifetime ISA within the tax year.
You can read more about the current ISA allowance on page about how ISAs work.
There have been no changes announced for the next tax year (2026-27).
From April 2027, what are the ISA rules changing to?
From 6 April 2027, the annual ISA limit will remain at £20,000, however only £12,000 of that can be held in Cash ISAs for those under-65 years old.
What does this look like for under 65s?
Within the overall £20,000 ISA limit you can add:
- Up to £4,000 into a Lifetime ISA, the same as today
- Up to £12,000 into Cash ISAs
- Up to £20,000 into Stocks and Shares or other investments
These limits overlap, not stack on top of each other.
For example
If you were to add £12,000 into Cash ISAs in the tax year and £4,000 into a Lifetime ISA, you would have £4,000 remaining to add to other ISA types such as Stocks and Shares.
Or if you added £4,000 into a Cash ISA and nothing in to a Lifetime ISA, then you would have £16,000 remaining to add to other ISA types.
What does this look like for those 65 and over?
Nothing will change. You can still put as much as you like into Cash ISAs within the overall £20,000 ISA limit. The £4,000 Lifetime ISA limit will also remain in place.
How does this change affect me?
If you use your ISA allowance each year to pay into a Cash ISA then you will no longer be able to save as much into your Cash ISA(s) from April 2027. Any existing ISA savings you have from previous years won’t be affected.
What should I do if I want to save more than the new Cash ISA limit?
Could I save into a non-ISA savings account?
Yes, you could save into a non-ISA savings account. However, the interest you earn from non-ISA accounts will count towards your Personal Savings Allowance, unlike ISAs. This may mean you have to pay tax on any interest you earn from them, depending on the amount of interest you earn and the rate of tax you pay.
You can view our range of savings accounts to learn more about how they work.
Could I save into another ISA type?
Yes, you could save into another ISA type such as a Stocks and Shares ISAs, Innovative Finance ISA or Lifetime ISA as these don’t count towards the new Cash ISA limit. These ISA types also have the same tax free benefits as a Cash ISA.
With Stocks and Shares and Innovative Finance ISAs your savings are invested and could go down in value, as well as up. This means you could get back less than you pay in. Tesco Bank do not offer Stocks and Shares or Innovative Finance ISA products.
When you save in an ISA the interest you earn won’t contribute to your Personal Savings Allowance, so you won’t pay tax on the interest you earn.
When you earn interest from a savings account that isn’t an ISA, it will count towards your Personal Savings Allowance. This doesn’t mean you’ll pay income tax on the interest you earn (most people can earn some interest from their savings without paying tax, source: HMRC 'Tax on Savings Interest' 16/09/2024) but it could if the amount of interest you earn goes beyond your Personal Savings Allowance.
The Personal Savings Allowance depends on what rate of income tax you pay:
- Basic-rate (20%) taxpayers: can earn £1,000 in savings interest per year with no tax
- Higher-rate (40%) taxpayers: can earn £500 in savings interest per year with no tax
- Additional-rate (45%) taxpayers: £0 – they do not get an allowance
- If you're a non-taxpayer: that is you have less than £12,570 income per year, you may be able to earn as much as £18,570 in savings interest tax-free
Tesco Bank won’t deduct tax from the interest you earn. The tax rules set by HM Revenue & Customs are subject to change, and the value of tax benefits depends on your individual circumstances.
Discover our range of Savings Accounts
You can compare our range of savings accounts to help you consider which account might be right for you. Eligibility criteria apply.