Over-60s ISA Rules 2026/27 and the April 2027 Change

GOV.UK says the ISA limit is £20,000 for 2026/27, and all of it can go into cash ISAs until 5 April 2027. From 6 April 2027, SI 2026/1018 sets a £12,000 cash limit unless you are 65 or over at the end of the tax year. The overall £20,000 limit stays.

Tax year 2026/27. Last reviewed 27 October 2026.

For a plan that works at any age, see using your £20,000 ISA allowance before April 2027. The Over-60s ISA and retirement savings guide has the wider picture.

Table of Contents

What changes for over-60s on 6 April 2027?

Today there is one ISA limit: £20,000 a year across all your ISAs (GOV.UK, ISA guide). The Individual Savings Account (Amendment) (No. 2) Regulations 2026 add a separate limit for cash ISAs from 6 April 2027. It depends on your age on 5 April at the end of each tax year.

Your age at the end of the tax year	Most you can pay into cash ISAs	Most you can pay into all ISAs
64 or under	£12,000	£20,000
65 or over	£20,000	£20,000

Source: SI 2026/1018, regulation 6; GOV.UK, cash ISA limit reduction.

The £12,000 sits inside the £20,000. At 62 you could pay £12,000 into a cash ISA and £8,000 into a stocks and shares ISA, or put all £20,000 into stocks and shares. The limits for stocks and shares ISAs and Lifetime ISAs do not change (HMRC factsheet).

How does the age 65 test work?

The regulation looks at your age on 5 April, the last day of the tax year. If you are 64 or under on that day, the £12,000 limit applies to that year. If you are 65 or over, it does not.

Two examples show where the line falls. If you turn 65 on 10 November 2027, you are 65 on 5 April 2028, so you can pay £20,000 into cash ISAs for the whole of 2027/28. If you turn 65 on 10 April 2028, you are 64 on 5 April 2028, so 2027/28 is limited to £12,000 and the £20,000 cash limit starts in 2028/29. The HMRC factsheet describes the same result: the higher limit applies from the start of the tax year in which you turn 65.

Can I move a stocks and shares ISA into cash after April 2027?

Only if you are 65 or over at the end of the tax year. From 6 April 2027, money can no longer move from a stocks and shares ISA or an innovative finance ISA into a cash ISA unless you are 65 or over (SI 2026/1018; HMRC factsheet). Moving from cash into stocks and shares stays possible. Cash ISA to cash ISA moves are not covered by the new rule.

What is the 22% charge on cash held in a stocks and shares ISA?

From 6 April 2027, interest paid on cash held in a stocks and shares ISA or innovative finance ISA is no longer tax-free. The ISA manager pays a flat charge to HMRC, set at the savings basic rate for the year, which is 22% for 2027/28 (Finance Act 2026, section 5; SI 2026/1018). You do not declare it on your tax return. The charge applies at every age, including 65 and over.

From the same date the investments in a stocks and shares ISA, apart from cash, cannot be 100% money market funds. Holding some money market funds alongside other investments is allowed (SI 2026/1018; HMRC factsheet).

Can I take money out of an ISA?

Yes. The GOV.UK ISA guide says you can take your money out of an ISA at any time without losing tax benefits, but check your terms for charges. If your ISA is flexible, you can take cash out and put it back in the same tax year without using up more of that year’s allowance. For example, with a £20,000 allowance and £10,000 paid in, taking out £3,000 leaves £13,000 you can still pay in if the ISA is flexible, and £10,000 if it is not.

What happens to my ISA if my spouse dies?

If your spouse or civil partner dies, you can add a tax-free amount to your own ISAs, up to the value they held in their ISA when they died or when it is closed. This is called an additional permitted subscription (GOV.UK ISA guide). The regulations that set the £12,000 cash limit do not mention it, so we cannot say whether it counts towards that limit. Ask the ISA provider. Our guide to ISA inheritance and APS covers the time limits.

How much of my cash is protected if a bank fails?

A cash ISA is a bank or building society account, so the Financial Services Compensation Scheme (FSCS) protects it up to £120,000 per eligible person, per bank, building society or credit union. The limit rose to £120,000 on 1 December 2025. Banks that share a banking licence count as one bank, so the limit applies to the total you hold across them. You can check which brands share a licence on the Financial Services Register.

How is savings interest taxed outside an ISA?

GOV.UK gives a Personal Savings Allowance of £1,000 for basic rate taxpayers and £500 for higher rate taxpayers. Additional rate taxpayers get none. You may also get a starting rate for savings of up to £5,000 if your other income is under £17,570. From 6 April 2027 the savings rates of Income Tax are 22% basic, 42% higher and 47% additional (Finance Act 2026, section 5). Interest inside an ISA is outside all of these.

For a worked comparison of a cash ISA and an ordinary savings account in retirement, see cash ISA or savings account for retirees.

What do people mean by “Martin Lewis best ISA rates for over 60s”?

Many people search for those words. Martin Lewis is credited as the founder of MoneySavingExpert, which publishes a regularly updated best cash ISAs table. When we last read that page it was dated 26 October 2026. Rates change often, so we do not list any. Nothing here is advice from Martin Lewis.

Frequently asked questions

Can I still put £20,000 into a cash ISA this year?

Yes. The GOV.UK ISA guide gives a £20,000 limit for 2026/27 and does not set a separate cash limit before 6 April 2027. Until 5 April 2027 the whole £20,000 can go into cash ISAs, whatever your age. Any allowance you do not use is lost when the tax year ends.

I am 62. How much can I pay into a cash ISA from April 2027?

Up to £12,000 a year while you are 64 or under on 5 April at the end of the tax year (SI 2026/1018). The overall ISA limit stays at £20,000, so you could put the other £8,000 into a stocks and shares ISA. In the tax year you turn 65 the limit goes back to £20,000.

Does the new limit affect cash I already hold in an ISA?

No. The £12,000 limit applies to how much you pay in each year. GOV.UK says your ISAs do not close when the tax year ends and you keep your savings tax-free for as long as the money stays in your ISA accounts.

Can I still move money between cash ISAs?

Yes. The new transfer rule only stops money moving from a stocks and shares ISA or innovative finance ISA into a cash ISA, and it lifts for people aged 65 or over (HMRC factsheet). Moving cash to stocks and shares stays possible. Use the new provider’s ISA transfer form, not a withdrawal.

How do I move an ISA without losing the tax-free status?

Contact the provider you want to move to and fill in its ISA transfer form. GOV.UK says that if you withdraw the money yourself, you cannot put that part of your tax-free allowance back in. Cash ISA transfers should take no longer than 15 working days.