Stocks and Shares ISA 2027 Changes for 64 year old

Louman231

Dear All

Hello.

I turn 65 in May 2027, so miss the threshold by one month😥.

I have a Stocks and Shares ISA , already. Can someone please help with questoins below.

1- Will new changes apply to account created before April 2027.

2- As I will be over 65 in April 2028, do I revert back to the old rules Stocks and Shares ISA, with a limit of £2000 no tax on funds on deposit, or will the limit still be £12000, with applicable tax on funds.

Many thanks for your help.

Loumani

masonic

You do not miss the threshold - if you are 65 during any part of the tax year then you will get the exemption to the £12k limit for cash ISAs.

If you are using your S&S ISA for investments (not just cash / money market funds), the only impact in this case would be the tax charge on interest from uninvested cash (if your platform pays any interest on uninvested cash). It is likely to be negligible.

zagfles

https://forums.moneysavingexpert.com/discussion/comment/82079768#Comment_82079768

Incorrect. The changes to taxation of interest in S&S ISAs affects everyone regardless of age, also the ban on 100% "cash-like" applies to everyone. The only differences for over 65's is the cash ISA limit is £20k and transfers from S&S ISAs to cash ISAs is allowed. See:

Tax-free savings newsletter 22 — June 2026 - GOV.UK

Enzo_L

Yes, you're right. I'd completely misunderstood it. Ooops! 🤐

Louman231

Thank you so much Zagfles.

From what I understand in the link you sent, from April 2027, as I will be 64, all changes apply to me.

But from April 2028, as I will be 65, cash ISA limit is £20k and transfers from S&S ISAs to cash ISA will be allowed, but interest on Cash in S&S Isa will still apply.

I understand there is an allowance on interest earned on savings , below which you don't pay any tax on saving?

Thanks again for your help.

Loumani

wmb194

https://forums.moneysavingexpert.com/discussion/comment/82083477#Comment_82083477

The new tax on interest earned on cash in an S&S Isa isn’t classed as income tax but rather as a, “charge” so the normal 0% income tax allowance for interest won’t apply.

masonic

https://forums.moneysavingexpert.com/discussion/comment/82083477#Comment_82083477

No that's incorrect. If you are 65 on or before 5th April 2028 then you are counted as being 65 for the 2027/28 tax year for these ISA reforms. Transfers from S&S to cash ISAs will be allowed in this case from 6th April 2027 onward.