June 2026’s newsletter provides an update on the April 2027 reform of Individual Savings Account (ISA) rules.
UK Budget 2025 announced significant changes to ISA rules which ICB has already summarised. Therefore, it is logical to update this with news so far and we point to HMRC’s June 2026 ‘additional’ newsletter. This details the final changes from April 2027:
Reform of Individual Savings Account (ISA) Rules
The annual subscription limits will be frozen at their current levels until April 2031 but from April 2027, the annual cash ISA limit will reduce to £12,000 for investors under the age of 65. So, although the overall subscription limit will be £20,000, £8,000 will need to be invested in stocks and shares ISAs to benefit. So:
- Cash ISA limit (under 65): £12,000; but
- Overall ISA limit £20,000
To expand on this change, the first section has several subheadings and should be read together with HMRC’s ‘anti-circumvention rules factsheet’ published in late June 2026:
- ‘Charge on interest paid on cash held in a non-cash ISA’;
- ‘100% cash‑like portfolios will be non-qualifying investments’;
- ‘Collection of data on Money Market Funds’;
- ‘Transfer restriction’; and
- ‘Application to those aged 65 and over’
First-time Buyer ISA Consultation
This points to a consultation on the implementation of a new, simpler ISA product to support first-time buyers to buy a home. This closes on 17 August 2026.
The Future of Help to Save
This will be reformed and HMRC’s Policy Paper dated 23 June 2026 confirms that the scheme will be delivered through a multi-provider model.
For Bookkeepers
Members may want to refer to the above links for personal investments, NOT for the purposes of advising on investments.