Over-60s ISA Rules 2026/27 After the Budget

The Autumn Budget on 28 October 2026 scrapped the planned £12,000 cash ISA limit, so over-60s can keep paying up to £20,000 a year into cash ISAs at any age. The age 65 test, the planned ban on moving stocks and shares ISA money into cash for under-65s and the 22% charge on cash held in stocks and shares ISAs are dropped too. The overall £20,000 ISA allowance is unchanged.

Tax year 2026/27. Updated for the Autumn Budget of 28 October 2026. Last reviewed 30 October 2026.

For a plan that works at any age, see using your £20,000 ISA allowance in 2026/27. The Over-60s ISA and retirement savings guide has the wider picture.

Table of Contents

What did the Autumn Budget change for over-60s ISAs?

The Individual Savings Account (Amendment) (No. 2) Regulations 2026 (SI 2026/1018) were due to cap cash ISA payments at £12,000 a year from 6 April 2027 for anyone aged 64 or under on 5 April at the end of the tax year. Chancellor John Healey said on 28 October 2026 that the government will not go ahead with that cut (Which?; MoneySavingExpert).

Rule	Planned from April 2027	After the Budget
Cash ISA limit, aged 64 or under	£12,000 a year	£20,000 a year
Cash ISA limit, aged 65 or over	£20,000 a year	£20,000 a year
Overall ISA limit	£20,000 a year	£20,000 a year
Moving stocks and shares ISA money into cash	Banned for under-65s	Allowed at any age
Interest on cash in a stocks and shares ISA	22% charge	Tax-free
Tax on savings interest outside an ISA	22%, 42% and 47%	24%, 44% and 49%

Sources: Which? Budget summary and MoneySavingExpert.

The HMRC factsheet that set out the transfer ban and the 22% charge also described a limit on holding only money market funds in a stocks and shares ISA. Budget coverage does not say whether that limit was dropped too, so check GOV.UK before relying on it.

Has the legislation changed yet?

SI 2026/1018 was made on 10 September 2026. We could not find legislation reversing it when we last checked, so confirm the current rules on the GOV.UK ISA page before you plan around April 2027.

What should over-60s do now?

If you planned to move savings into stocks and shares ISAs to stay under a £12,000 cash limit, you no longer need to. The whole £20,000 can go into cash ISAs in 2026/27 and in later years.
Your age no longer changes the cash limit. The 5 April age test existed only for the cash cut, so turning 65 makes no difference to what you can pay into a cash ISA.
You can move money from a stocks and shares ISA into a cash ISA at any age. Use the new provider’s ISA transfer form and do not withdraw the money yourself.
Allowance you do not use in 2026/27 is lost after 5 April 2027.

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 planned £12,000 cash limit raised the question of whether it would count towards that limit. With the cut scrapped, there is no separate cash limit to count it against. 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. Interest inside an ISA is outside all of these.

From 6 April 2027 the savings rates of Income Tax are 24% basic, 44% higher and 49% additional. The Finance Act 2026 set them at 22%, 42% and 47%, and the Autumn Budget added two more points (Which?). A higher rate taxpayer with £800 of interest has £300 above the allowance. That costs £120 in 2026/27 at 40% and £132 from April 2027 at 44%.

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

What happens to the Lifetime ISA?

A First Time Buyer ISA will replace the Lifetime ISA from April 2029 (Which?). We could not find guidance on what happens to existing Lifetime ISAs, so ask your provider. Until then the usual rule applies: you can take money out at 60 without the 25% withdrawal charge.

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

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 put £20,000 into a cash ISA?

Yes. The GOV.UK ISA guide gives a £20,000 limit for 2026/27, and the whole amount can go into cash ISAs whatever your age. The Autumn Budget on 28 October 2026 scrapped the planned £12,000 cash ISA limit that was due in April 2027. 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 £20,000 a year. The Autumn Budget on 28 October 2026 scrapped the planned £12,000 cash ISA limit for people aged 64 or under, so your age no longer changes the cash limit. The overall ISA limit is £20,000, and you can split it between cash and other ISAs. Check GOV.UK for the legislation that reverses the earlier rule (SI 2026/1018).

Does the Budget change cash I already hold in an ISA?

No. Your ISAs do not close when the tax year ends, and GOV.UK says you keep your savings tax-free for as long as the money stays in your ISA accounts.

Can I still move money from a stocks and shares ISA into a cash ISA?

Yes. The Autumn Budget on 28 October 2026 dropped the planned rule that would have stopped savers under 65 moving money from a stocks and shares ISA into a cash ISA. 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.