Retail investors and markets have mostly welcomed chancellor Rachel Reeves’ proposed shakeup of the ISA regime, with major changes to the cash and Lifetime ISAs set to be implemented over the coming years.
From April 2027, the cash ISA annual allowance will be cut from £20,000 to £12,000, Reeves revealed at the dispatch box yesterday (26 November), with the £8,000 difference "reserved exclusively for investment". This reform was widely expected, with ministers having briefed the media in the weeks leading up to the Budget about the potential change. However, those aged over 65 will retain the full cash ISA allowance, a change that was only revealed in the Budget. Insignis CEO Kate Toumazi argued the exemption represents "a positive move that reflects the continued importance of cash...
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