New allowance - what happens to the old allowance?

Chickenlady01eggs

Hi, if I've already got £20k for last year's allowance but the govt reduces it to £4k this year,  what will happen to the previous amount? Will it continue to be all tax free do you think? 🤔
Thanks CL

masonic

It is vanishingly unlikely that the spring statement today will contain anything that would reduce the 2024/25 ISA allowance. Earlier allowances are already spent and cannot be changed retrospectively. It is also quite unlikely that anything will happen to the 2025/26 allowance today, since there is a planned consultation on what to do. Suspect everyone will be in a rush to use their allowance on cash ISAs in the new tax year to avoid being impacted by anything happening mid-year.

northernstar007

masonic said:

 Suspect everyone will be in a rush to use their allowance on cash ISAs in the new tax year to avoid being impacted by anything happening mid-year.

and jumping in on a fix (4.5%), cant see rates going up with inflation dropping today?

FrugaiMacDugal

Chickenlady01eggs said:

Hi, if I've already got £20k for last year's allowance but the govt reduces it to £4k this year,  what will happen to the previous amount? Will it continue to be all tax free do you think? 🤔
Thanks CL

So you have £20k in last tax year allowance, 23/24, that's save. plus interest.

You still have time to put £20k in for this tax year, 24/25, and then from 6th April 25 another £20k in new isa for tax year 25/26.

slinger2

Difficult to believe that much will happen today regarding isas. If anything it'll relate to 26/27 and beyond. Anything relating to 25/26 would have to be very simple, eg a small change in the allowance,

Albermarle

Chickenlady01eggs said:

Hi, if I've already got £20k for last year's allowance but the govt reduces it to £4k this year,  what will happen to the previous amount? Will it continue to be all tax free do you think? 🤔
Thanks CL

Stop worrying about speculation in the media, which is usually highly inaccurate.