HMRC’s Tax-free Savings Newsletter

It is worthwhile pointing to HMRC’s Tax-free savings newsletter, published after the UK Budget on 26 November 2025 but updated in December. This newsletter provides a summary of the UK Budget changes:

The newsletter confirms the annual subscription limits, frozen at their current levels until April 2031;
There is confirmation of the cash Individual Savings Account (ISA) changes from April 2027 and how this will reduce to £12,000 for investors under the age of 65. Although the overall subscription limit will remain at £20,000, £8,000 will need to be invested in stocks and shares ISAs to benefit;
As a result of the above changes to cash ISAs, the UK Government has postponed mandatory digitisation until April 2028;
The Lifetime ISA section confirms that whilst there will be a consultation on reforms, these can still be opened and existing account holders can continue to save under the current rules as long as they want. This fact was the reason for the December 2025 update;
The Help to Save scheme is to be made permanent plus the newsletter confirms the UK Budget announcement that the eligibility criteria will be extended from April 2028 (to include all Universal Credit claimants receiving the child or caring element); and
There is confirmation of the increase to UK-wide Income Tax savings rates from April 2027 (with the Basic, Higher and Additional rates all increasing by 2%). However, the Starting Rate for savings and the Personal Savings Allowance remain unchanged