US EditionRachel Reeves poised to cut annual cash Isa limit to £12,000 in Budget
The annual cash ISA limit will drop from £20,000 to £12,000 to encourage investment in UK stocks and address a £22 billion fiscal shortfall, officials said.
- Chancellor Rachel Reeves plans to cut the cash ISA limit from 20,000 to 12,000 in her Budget on Wednesday, officials confirm.
- Amid a fiscal shortfall, officials argue the chancellor aims to push British households into the UK stock market to help fill a £22bn black hole.
- Initially, the chancellor favoured a £10,000 cap before raising it after months of fierce debate, and her team reportedly considered a 'Brit ISA' requiring 20 per cent into UK equities but dropped it after backlash from ISA providers.
- Opponents warned the cut would anger millions, with Sir Mel Stride, Tory shadow chancellor, accusing it of a 'tax raid on savers' and harming older people relying on building societies.
- Trends in ISA flows show stocks and shares ISA money fell 9% while cash ISA injections more than doubled between 2021-22 and 2023-24, amid rumours of slashing the two‑child benefit cap and a mansion tax on more than 100,000 properties.
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Everything you need to know ahead of Rachel Reeves's Budget
Britons face potential tax increases across multiple areas as Chancellor Rachel Reeves prepares to deliver her Budget to the House of Commons on Wednesday.The Chancellor has said she is ready to make what she calls “necessary choices” to help reduce NHS waiting lists, bring down national debt and ease living costs, with both tax rises and spending cuts under consideration.Ms Reeves requires additional revenue to meet the Government's fiscal rule…
The Independent
The Independent (US)Rachel Reeves set to cut annual cash ISA limit to £12,000 in Budget
The chancellor is set to lay out her highly-anticipated Budget on Wednesday
Cash ISA allowance expected to be cut to £12k in Budget
UK Chancellor Rachel Reeves is reportedly set to slash the annual cash ISA allowance to £12,000 in tomorrow's Budget, according to reports. The government is hoping the move will push more people to invest in stocks and shares ISAs instead of cash ISAs, which could boost the UK economy. According to HMRC, around 15 million adult ISAs were subscribed to ISAs in 2023/24 – just under 10 million of which were cash ISAs. However, experts have repeate…
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