HMRC’s latest Tax-free Savings newsletter provides further updates on the April 2027 reform of Individual Savings Account (ISA) rules.
HMRC’s Tax-free savings newsletter updates individuals on the latest news regarding savings that can be made free of Income Tax. As we have highlighted, UK Budget 2025 announced significant changes to ISA rules and we have summarised these. However, the Individual Savings Account (Amendment) (No. 2) Regulations 2026 have now been laid and make a few changes, so we point to the newsletter for your information:
- Reform of Individual Savings Account (ISA) Rules – whilst the annual subscription limits are frozen at their current levels until April 2031, from April 2027, the annual cash ISA limit will reduce to £12,000 for investors under the age of 65. The remaining £8,000 will need to be invested in stocks and shares ISA. The above regulations introduce rules designed to prevent investors from avoiding the lower Cash ISA limit;
- Lifetime ISA transfers – this section advises that some Lifetime ISA (LISA) managers have reported issues with transfer reporting through the application programming interface (API). HMRC’s advice is to ensure these transfers are reported accurately; and
- Digital ISA service user research opportunities – this section advises that HMRC are looking for ISA managers and third-party administrators to take part in research on HMRC’s digital ISA service
For Bookkeepers
This newsletter is for personal investments and not for the purposes of advising on investments.