New ISA limit 2025 - Fixed rate ISA

johnB

When (if?) the new rules come in regarding a £5k or £4k limit on cash ISA's, what happens when you get near top maturity on a fixed term ISA with more than that amount?
Will you be able to transfer the whole amout or just $5k or£4k?

Peter999_2

The £5 or £4k will (hopefully) just apply to new investments.   Anything you've already go within the ISA will be fine.   i.e.   if you save £20,000 this year, and get £20,500 when it matures, you can then take out another ISA with the £20,500 and it will still be tax free.

Who knows what she will announce on 15th July though, she's not the most predictable person (well apart from always making the wrong decisions).

Ayr_Rage

 johnB said:

When (if?) the new rules come in regarding a £5k or £4k limit on cash ISA's, what happens when you get near top maturity on a fixed term ISA with more than that amount?
Will you be able to transfer the whole amout or just $5k or£4k?

Rachel is still looking into her crystal ball.

Speculation regarding "new money" limits and "total allowed in cash" is just that.

No need for yet another "what if" topic, I'm going to report this for closure.

Albermarle

johnB said:

When (if?) the new rules come in regarding a £5k or £4k limit on cash ISA's, what happens when you get near top maturity on a fixed term ISA with more than that amount?
Will you be able to transfer the whole amout or just $5k or£4k?

I would say the chance of it being reduced so low is approx zero, if it gets reduced at all.

badmemory

Certain newspapers have been bringing this up with monotonous regularity for months.  Things may change or maybe not.  The thing is ISAs were great for mostly tory pals & not so great for mostly Labour pals.  I doubt existing ISAs will have any problem - or at least not for a couple of years anyway.

Kim_13

ISA transfers are unlikely to be affected - that money has been validly subscribed according to the rules and limits in place at the time, so would come at more of a political cost than lowering what is generous limit going forward.

If the government did decide to state that only £5K or some other figure subscribed in 2025/2026 would remain inside the ISA wrapper, it would be a nightmare, as it would not be fair to assume that everyone wanted to keep the first £5K they contributed. 

slinger2

Currently transfers have nothing to do with the £20k annual subscription limit. You can currently transfer a £100k ISA.

Personally I'm expecting a cut in the annual allowance (perhaps to £10k). Whether any cut will be just for Cash ISAs or all ISAs will be interesting to see. Of course, anything is possible but major changes are likely to be complicated to implement and very unpopular too.

Flugelhorn

I expect there will be a cut - the thought of all the tax from them interest on savings accounts will be too much to resist

born_again

She did state before that Cash ISA would be the target, as she want people to invest in Stocks & Shares ISA to help the economy.
I would imagine that very little investment in a SS ISA actually goes to UK companies. As well as not everyone putting money into a ISA, wants a long term investment which as SS Isa is.

slinger2

If they did have different limits for Cash and S&S ISAs, they'd clearly have to limit transfers from S&S ISAs to Cash ISAs otherwise you could put the money into a S&S ISA and then later transfer it to a Cash ISA.

Even if they managed to stop that, they'd have to ban the use of cash-type investments, for new money at least.

It's all a can of worms.

cantbelieveit23

Just wait until Monday in the first instance.  None of us know precisely what will be announced, but as others have mentioned, probably the most likely change will be a cut in the tax free allowance for new ISAs from April 2026.  Changing the limit mid-year would cause chaos, and taxing money that had been deposited tax free would more likely end in a revolution.  However, you never can tell......