Advisers have welcomed the move for the cash ISA annual allowance to be cut from £20,000 to £12,000 but have aired some concerns, including around consumer understanding and the impact on lending.
Chancellor Rachel Reeves confirmed this in the Autumn Budget today (26 November). While speaking in the House of Commons, she confirmed the plans to slash the cash ISA allowance, a change that had been widely touted during the build-up to the Budget. From April 2027, £8,000 of the allowance will be "reserved exclusively for investment", Reeves told MPs. However, those aged over 65 will retain the full cash ISA allowance. The measure aims to shift more UK savers into equity markets and reduce the volume of money held in cash. Moneyfarm investment adviser Peter Rice supported the ...
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