'Last chance' for anyone aged under 65 before HMRC allowance slashed

'Last chance' for anyone aged under 65 before HMRC allowance slashedTax-free limits are being slashedCommentsMoneySteven Smith Content Editor08:57, 05 Apr 2026View 3 ImagesHMRC is making changes(Image: MarioGuti via Getty Images)Financial experts have warned people that upcoming changes means a 'last chance' to maximise what's available. Millions of ISA savers face a ticking clock as the new tax year kicks off to make the most of their full £20,000 HMRC allowance in cash.‌The new tax year, beginning on April 6, presents ISA savers with the opportunity to set aside up to £20,000 under the annual allowance for adults. From April 6, 2027, however, upcoming changes will mean that, while the total annual ISA allowance will remain at £20,000, adults aged under 65 will only be permitted to save up to £12,000 in a cash ISA, with the remaining £8,000 allowance potentially being directed into stocks and shares. Savers aged 65 and over will keep the annual £20,000 subscription limit for a cash ISA.‌Catherine Wray, head of saving at Leeds Building Society, said: "This will be the last year that tax-free limit on cash Isas will remain at £20,000 for all. Next April it reduces to £12,000 unless you are over 65, in which case there is no change. The aim is to encourage people to invest by providing a higher tax-free wrapper on other ISAs such as stocks and shares, but cash saving remains very important."‌She added: "Cash ISA savings remain indispensable; they help achieve savings goals, give people stability and financial resilience to allow them to consider investing at the right time for them. In an uncertain world, the security provided by savings gives psychological safety for consumers, as a third of consumers are put off investing by global instability."In fact, 49 per cent of people we surveyed said they are drawn to cash savings for their accessibility, 46 per cent for the predictable returns and 45 per cent for their simplicity...